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jmc

algebra senior

Problem

An investment of \24,\!0001\%1\%$ every two months). At the end of five years, what is the total number of dollars in this investment?

Express your answer to the nearest whole number.
Solution
Five years make sixty months, so interest will have been compounded 30 times. That means that the investment will have grown to \24,\!000 \cdot 1.01^{30} \approx \boxed{\32,\!348}, to the nearest dollar.
Final answer
\$32,\!348