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If $400 are deposited into an account with 7% interest rate, compounded monthly, what is the balance after 8 years?

User Djsly
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2 Answers

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Answer: F = 699.13

Step-by-step explanation: Acellus ✅

User Dguay
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Final answer:

The balance after 8 years with a $400 deposit at a 7% interest rate compounded monthly is $677.62.

Step-by-step explanation:

To find the balance after 8 years, we can use the formula for compound interest: A = P(1+r/n)^(nt), where A is the final balance, P is the principal amount (initial deposit), r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.

In this case, the principal amount is $400, the interest rate is 7%, and interest is compounded monthly. So, the formula becomes A = 400(1+0.07/12)^(12*8).

Simplifying the equation gives A = $677.62. Therefore, the balance after 8 years will be $677.62.

User Wbamberg
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