Question

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 1

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

Find Interest=I

`\\ \sf\longmapsto I=(PRT)/(100)`

`\\ \sf\longmapsto I=(700(6)(10))/(100)`

`\\ \sf\longmapsto I=7(60)`

`\\ \sf\longmapsto I=\$420`

Now

• Total money=P+I=700+420=$1120

Money after 10years:-

`\\ \sf\longmapsto 1120(10)`

`\\ \sf\longmapsto \$11200`