Answer:
We can use the formula for compound interest to solve this problem:
A = P(1 + r/n)^(nt)
where:
A = the balance after t years
P = the principal amount (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 problem, P = $6,500, r = 0.084, n = 12 (monthly compounding), and t = 12. Plugging in these values, we get:
A = $6,500(1 + 0.084/12)^(12*12)
A = $6,500(1.007)^144
A = $6,500(2.008)
A = $13,052.20
Therefore, the balance after 12 years is $13,052.20 when the interest is compounded monthly.