Question

Sutton deposited $7500 into an account paying 6.24% annual interest compounded monthly. How much money will be in the account after 7 years? (also called Future value) Round to the nearest cent if necessary.​

Answer 1

Answer: $11,594.97

Work Shown:

A = P*(1+r/n)^(n*t)

A = 7500*(1 + 0.0624/12)^(12*7)

A = 11,594.9685957732 approximately

A = 11,594.97

Notes:

• P = 7500 is the principal or deposit amount
• r = 0.0624 is the decimal form of 6.24%
• n = 12 refers to the money compounded 12 times a year (i.e. compounded monthly).
• t = 7 is the number of years