227k views
3 votes
if $8,000 is deposited in an account paying 12% compounded monthly, then what amount will be in the account after 7 years? ( please include solutions, thank you)

User Zyoma
by
8.1k points

2 Answers

5 votes
rate = rate / 12monthsrate = .12 / 12
rate = .01

Total = 8,000 *(1.01)^ 12 * 7

Total = 8,000 *(1.01)^84

Total = 8,000 * 2.306722744
Total = 18,453.78


if $8,000 is deposited in an account paying 12% compounded monthly, then what amount-example-1
User Nicolas Janel
by
8.3k points
5 votes
The compound interest formula is
FV=P(1+(r/n))^n*t
FV= future value
P= principal or amount of $ deposited
r= annual interest rate in decimal form
n= number of times compounded per year
t= time in years

Therefore 8000(1+(.12/12))^12*7 which equals $18453.78
User HAlE
by
7.4k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories