Question

A retirement account is opened with an initial deposit of $8,000 and earns 7.12% interest compounded monthly. What will the account be worth in 25 years?

Answer 1

Step-by-step explanation: Take the amount he started with, 8,000, our coefficient, and since it is being increased by 7.12 percent, therefore, we put it all together, and that will be 8000(1.712) to the power of five which is.. 117,654.56 dollars (you're welcome)

Answer 2

Explanation:

Future Value = Present Value ( 1 + i)^n

i = decimal interest per PERIOD (.0712/12)

n = periods = 25 * 12 = 300 months

Future value = 8000 ( 1 + .0712/12)^300 = $ 47189.98