Rob opened a savings account and deposited 7,000.00 as principal. The account earns 5% interest, compounded monthly. What is the balance after 10 years?

Solution

Rob opened a savings account and deposited 7, 000.00 as principal. The account earns 5% interest, compounded monthly. What is the balance after 10 years?

Solution

Amount : 11529.07

Solution steps

Translate the problem into an equation:

A = 7000 (1 + \frac{0.05}{12})^{12 \cdot 10}

7000 (1 + \frac{0.05}{12})^{12 \cdot 10} = 11529.06648 \dots

Round to the nearest hundredth:

11529.07

Amount : 11529.07

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