Question

$1210 is invested in an account earning 11.5% interest compounded monthly. What is the balance at the end of 13 years? Group of answer choices

Answer 1

Final amount = $5357.52

Explanation:

Formula to be used,

Final amount =
`\text{Initial amount}* (1+(r)/(n))^(nt)`

Here, n = number of compounding in a year

t = Duration of investment

Now we substitute the given values in the question.

Final amount =
`1210(1+(0.115)/(12))^(12* 13)`

=
`1210(1.009583)^(156)`

= 1210(4.4277)

= $5357.52