Samir is saving up money to buy a car. Samir puts 7,000.00 into an account which earns 13% interest, compounded monthly. How much will he have in the account after 9 years?

Solution

Samir is saving up money to buy a car. Samir puts 7, 000.00 into an account which earns 13% interest, compounded monthly. How much will he have in the account after 9 years?

Solution

Amount : 22412.48

Solution steps

Translate the problem into an equation:

A = 7000 (1 + \frac{0.13}{12})^{12 \cdot 9}

7000 (1 + \frac{0.13}{12})^{12 \cdot 9} = 22412.48234 \dots

Round to the nearest hundredth:

22412.48

Amount : 22412.48

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