Question

1. If you deposit $6500 into an account paying 8% annual interest compounded monthly, how much money will be in the account after 7 years? Compare this to the amount you would have in the account with simple interest.

Answer 1

After 7 years there will be $11358.24 in the account.

Answer 2

After 7 years $11,358.24 in the account

Explanation:

FV=6500
`(1+(0.08)/(12))^1^2^(^7^)\\</p><p>FV=6500(1.00666666)^8^4\\</p><p>FV=6500(1.747422051)\\</p><p>FV=11358.24`