Question

A principal of $7,854 is placed in an account that earns 6% interest. If the interest is compounded monthly, how much money will be in the account at the end of 22 years?

Answer 1

$124407.36

Explanation:

Simple interest formula: I = P x R x T / 100

22 x 12 months = 264 months (=22 years)

7854 x 6 x 264 / 100 = $124,407.36