Question

If $1209 is deposited in an account that pays 8. 2% interest compounded monthly, what is the balance after 26 years? Use: A=P(1+r)t

Round to the nearest cent

Answer 1

Explanation:

We can use the interest equation (mind you it is the same thing as said in the problem) to solve this:

`A=P(1+(r)/(n))^(nt)`

Where A is the resulting amount, r is the interest rate, n is the number of times compounded per year and t is the time.

`A=1209(1+(.082)/(12) )^(12*26)`

A = $10,120.29