Question

Use the given information to find the balance in the account earning compound interest after 6 years when the principal is $3500.

$r=1.26\%$r=1.26%​ , compounded monthly

Answer 1

`~~~~~~ \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}\dotfill &\$3500\\ r=rate\to 1.26\%\to (1.26)/(100)\dotfill &0.0126\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &6 \end{cases}`

`A = 3500\left(1+(0.0126)/(12)\right)^(12\cdot 6)\implies A=3500(1.00105)^(72) \implies A \approx 3774.71`