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You deposit $6000 in an account earning 7% interest compounded monthly. How much will you have in the account in 15 years?

2 Answers

5 votes

Answer:

$67,000 after 15 years.

Explanation:

You deposit $6000 in an account earning 7% interest compounded monthly. How much will you have in the account in 15 years? account will have $67,000 in it after 15 years

User Walshy
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To solve this problem, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

where:
A = the total amount in the account after t years
P = the principal amount (the initial deposit)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years

In this case, we have:

P = $6000
r = 0.07 (7% as a decimal)
n = 12 (compounded monthly)
t = 15

So we can plug these values into the formula:

A = $6000(1 + 0.07/12)^(12*15)
A = $6000(1.00583)^(180)
A = $6000(2.1961)
A = $13,176.60

Therefore, you will have $13,176.60 in the account after 15 years.
User Danyapd
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