John invests $250 at 15% interest compounded monthly. How much will he have in 20 years?

$4928.87

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

Brackets Parenthesis Exponents Multiplication Division Addition Subtraction Left to Right

Algebra I

Compounded Interest Rate Formula:

P is principle amountr is raten is compound ratet is time

Step-by-step explanation:

Step 1: Define

Identify variables

P = 250

r = 15% = 0.15

n = 12

t = 20

Step 2: Solve

Substitute in variables [Compounded Interest Rate Formula]:                     [Exponents] Multiply:                                                                                        (Parenthesis) Divide:                                                                                        (Parenthesis) Add:                                                                                            Evaluate exponents:                                                                                         Multiply: