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Amy deposited $750 in a saving account that pays 6.75% Interest compounded monthly. Calculate the total amount in the account after 10 years.

User Blackdog
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1 Answer

1 vote

Answer:

Amount after 10 years is $1472.775

Explanation:

Amy deposited $750 in a saving account that pays 6.75% Interest compounded monthly for 10 years.

Principal amount= $750

Rate of interest= 6.75%

Time= 10 years

Number of times compounded= 10*12

Number of times compounded= 120

A= p(1+r/n)^(nt)

A= 750(1+0.0675/120)^(120*10)

A= 750(1+0.0005625)^(1200)

A= 750(1.0005625)^(1200)

A= 750(1.9637)

A= 1472.775

Amount after 10 years is $1472.775

User Dvv
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