Question

You deposit

$
6500
into an account paying
8
%
annual interest compounded monthly. How much money will be in the account after
7
years?

Answer 1

I believe it is $10,140. Apologies if I’m wrong.

Answer 2

Use the formula A = p(1 + r/n)^(nt).

Here is the set up:

A = 6500[1 + (0.08/4)]^(4•7)

Solve for A.