Question

13 p

Roxanna invested $10,000 in an account that earns 8.5% interest that is
compounded monthly. Determine the amount of money in the account in
15 years. (Lesson 7-10b)

Answer 1

$35,100

Explanation:

Given data

Principal=$10000

Rate= 8.5%

Time = 15 years = 180 months

The expression for monthly compounded interest is

A=P(1+r/12)^t

substitute

A=10000(1+0.085/12)^180

A=10000(1+0.007)^180

A=10000(1.007)^180

A=10000*3.51

A=$35,100

Hence the balance is $35,100