Question

Quiz

5. Find the balance in the account.

$700 principal earning 5%, compounded monthly, after 9 years

A $16,088.19

B $79,380.00

c $1,096.79

D $1,085.93

Answer 1

correct option is c $1,096.79

Explanation:

given data

principal = $700

rate = 5 % compounded monthly = 0.05

time = 9 year

to find out

balance

solution

we will apply here formula that is

balance =
`P *( 1+ (r)/(n) )^(n*t)` ..................1

here P is principal and r is rate and t is time and n is compounding frequency i.e. 12

so put here all value we get balance by equation 1

balance =
`P *( 1+ (r)/(n) )^(n*t)`

balance =
`700 *( 1+ (0.05)/(12) )^(12*9)`

balance = $1,096.79

so correct option is c $1,096.79