165k views
2 votes
You deposit

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

User Kayra
by
7.5k points

2 Answers

1 vote
I believe it is $10,140. Apologies if I’m wrong.
User SRUCLA
by
7.6k points
5 votes

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.

User Vlad Ilie
by
7.4k points