brooklyn invested \\$94,000 in an account paying an interest rate of $1.9\\%$ compounded monthly. assuming…

brooklyn invested \\$94,000 in an account paying an interest rate of $1.9\\%$ compounded monthly. assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 16 years?

brooklyn invested \\$94,000 in an account paying an interest rate of $1.9\\%$ compounded monthly. assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 16 years?

Answer

Explanation:

Step1: Identify the compound interest formula

$$A = P \left(1 + \frac{r}{n}\right)^{nt}$$

Step2: List the given values

$P = 94,000$, $r = 0.019$, $n = 12$, $t = 16$

Step3: Substitute values into the formula

$$A = 94,000 \left(1 + \frac{0.019}{12}\right)^{12 \times 16}$$

Step4: Calculate the periodic interest rate

$$\frac{0.019}{12} \approx 0.001583333$$

Step5: Calculate the total number of periods

$$12 \times 16 = 192$$

Step6: Calculate the final amount

$$A = 94,000 \left(1.001583333\right)^{192} \approx 127,351.631$$

Answer:

$127,351.63