Question

You deposit $ 586 each month into an account earning 6.6 % interest compounded monthly. How much will you have in the account in 11 years?$__________ (Round to 2 decimal places if necessary)

Answer 1

This question requires us to find the future sum of an amount compounded annually at 6.6%.

The formula for the compounded sum is:

`F=P(1+i)^n`

Where:

F = Future sum after compounding

P = Principal / Present sum

i = interest rate

n = time (in years)

Therefore, we have:

`F=586(1+0.066)^(11)=1183.66`

$1,183.66 is the amount in the account in 11 years