Find the amount In the account after $600 is invested for 1 year at 7% compounded monthly?
2 Answers
Total amount acrued is
Explanation:
Formula for compound interest :
"A" is total amount acrued , "P" is principal , "r" is rate of interest,
"n" is number of periods compounded in a year, "t" is period in
year.
Total amount acrued is
Explanation:
For compound interest, we have the following:
Where:
FV = future value. This is the amount after t years.
PV = present value. This is the amount at the beginning.
r = interest rate. This is given as a decimal. i.e.
n = compounding period. The number of compounds per year.
t = time. In this case years.
Plugging in known values.
PV = $600
r = 7% = 0.07
n = 12
t = 1
You will need to use a calculator here.
Amount after 1 year is.