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Gina deposited $4200 in an account that pays 6% interest compounded monthly. What will the balance be in 7 years?

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Final answer:

The balance in the account after 7 years with a $4,200 deposit and a 6% interest rate compounded monthly is $6,627.41.

Step-by-step explanation:

To calculate the balance of the account after 7 years, we can use the formula for compound interest:

Balance = Principal * (1 + (interest rate / number of compounding periods))^(number of compounding periods * number of years)

In this case, the principal (initial deposit) is $4,200, the interest rate is 6% (0.06 as a decimal), and the interest is compounded monthly (12 compounding periods in a year).

Using the formula, the balance after 7 years is:

Balance = $4,200 * (1 + (0.06 / 12))^(12 * 7) = $6,627.41

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