Question

Use the appropriate compound interest formula to compute the balance in the account after the stated period of time ​$8,000 is invested for 17 years with an APR of 3.55​% and monthly compounding. Question content area bottom Part 1 The balance in the account after 17 years is ​$enter your response here. ​(Round to the nearest cent as​ needed.)

Answer 1

$14,962.83

To calculate the balance in the account after 17 years, we can use the formula for compound interest:

A = P x (1 + r)^n

where:

A = the balance after n periods

P = the principal amount (in this case, $8,000)

r = the annual interest rate (in this case, 3.55% / 12 months = 0.00355/month)

n = the number of periods (in this case, 17 years x 12 months/year = 204 months)

Using this formula, we get:

A = $8,000 x (1 + 0.00355/month)^(204 months)

Simplifying and calculating the formula using a calculator, we get:

A = $8,000 x (1 + 0.00355/month)^(204 months) ≈ $14,962.83

Therefore, the balance in the account after 17 years is approximately $14,962.83, rounded to the nearest cent.

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