Question

if $850 are deposited into an account with 6% interest rate, compounded monthly what is the balance after 7 years?

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$850\\ r=rate\to 6\%\to (6)/(100)\dotfill &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &7 \end{cases} \\\\\\ A = 850\left(1+(0.06)/(12)\right)^(12\cdot 7) \implies A = 850( 1.005)^(84)\implies A \approx 1292.31`

Answer 2

Answer:1292.31...

Explanation: