if an individual saves $5,700 and elects to place the total dollar amount into a savings account earning 2.75% APR compounded monthly, how much will the original deposit grow to in 12 years?
+37170 Since we are compounding MONTHLY, we need to look at the MONTHLY INTEREST RATE (assuming APR does NOT account for compounding already)
2.75 / 12 = .229167 % / month
12 years is 12 x12 interest periods (months) = 144
fv = pv (1+ i ) ^t where i is interest rate in decimal = .00229167 and t is the time periods 144 fv = future value pv = present value (5700)
fv = 5700 (1+ .00229167)^144 = 7925.53
