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Answered

You invest an initial $700 in an account that has an annual interest rate of 6%, compounded monthly. How much money will you have in the account after 10 years? Round your answer to the nearest whole number and cent.

Answer :

  • Principal=P=$700
  • Rate of interest=R=6%
  • Time=10years=T

Find Interest=I

[tex]\\ \sf\longmapsto I=\dfrac{PRT}{100}[/tex]

[tex]\\ \sf\longmapsto I=\dfrac{700(6)(10)}{100}[/tex]

[tex]\\ \sf\longmapsto I=7(60)[/tex]

[tex]\\ \sf\longmapsto I=\$420[/tex]

Now

  • Total money=P+I=700+420=$1120

Money after 10years:-

[tex]\\ \sf\longmapsto 1120(10)[/tex]

[tex]\\ \sf\longmapsto \$11200[/tex]

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