Question

Find the balance in the account after the given period.

$1,400 principal earning 7%, compounded monthly, after 22 years

Answer 1

$6501.27

Explanation:

The compound interest formula tells you the amount A resulting from investment of principal P at rate r compounded n times a year for t years:

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

Filling in the given numbers and doing the arithmetic, we get ...

A = $1400(1 +.07/12)^(12·22) ≈ $6501.27

The account balance will be $6501.27.