Question

Find the balance in the account.
$700 principal earning 5%, compounded monthly after 9 years

Answer 1

`\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\$700\\ r=rate\to 5\%\to (5)/(100)\to &0.05\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{there are twelve months} \end{array}\to &12\\ t=years\to &9 \end{cases} \\\\\\ A=700\left(1+(0.05)/(12)\right)^(12\cdot 9)`

Answer 2

700 x .5 = 350
9 x 12 = 108
108 x 3.50
1330