if $850 are deposited into an account with a 6% interest rate, compounded monthly, what is the balance after…

if $850 are deposited into an account with a 6% interest rate, compounded monthly, what is the balance after 7 years? f = $? f = p(1 + \\frac{r}{n})^{nt} round to the nearest cent.

if $850 are deposited into an account with a 6% interest rate, compounded monthly, what is the balance after 7 years? f = $? f = p(1 + \\frac{r}{n})^{nt} round to the nearest cent.

Answer

Explanation:

Step1: Identify the values

$P = 850$, $r=0.06$, $n = 12$, $t = 7$

Step2: Substitute into the compound - interest formula

$F=P(1 +\frac{r}{n})^{nt}=850(1+\frac{0.06}{12})^{12\times7}$

Step3: Calculate the value inside the parentheses first

$\frac{0.06}{12}=0.005$, $1 + 0.005=1.005$

Step4: Calculate the exponent

$12\times7 = 84$

Step5: Calculate the power

$1.005^{84}\approx1.52076$

Step6: Multiply by the principal

$F=850\times1.52076\approx1292.65$

Answer:

$1292.65$