if $550 is deposited into an account with a 7.5% interest rate, compounded monthly, what is the balance…

if $550 is deposited into an account with a 7.5% interest rate, compounded monthly, what is the balance after 14 years? f = $? f = p(1 + \\frac{r}{n})^{nt} round to the nearest cent.

if $550 is deposited into an account with a 7.5% interest rate, compounded monthly, what is the balance after 14 years? f = $? f = p(1 + \\frac{r}{n})^{nt} round to the nearest cent.

Answer

Explanation:

Step1: Identify the values

$P = 550$, $r=0.075$, $n = 12$, $t = 14$

Step2: Substitute into the formula

$F=P(1 +\frac{r}{n})^{nt}=550(1+\frac{0.075}{12})^{12\times14}$

Step3: Calculate the value inside the parentheses

$1+\frac{0.075}{12}=1 + 0.00625=1.00625$

Step4: Calculate the exponent

$nt=12\times14 = 168$

Step5: Calculate the power

$(1.00625)^{168}\approx2.85767$

Step6: Calculate the final amount

$F = 550\times2.85767\approx1571.72$

Answer:

$1571.72$