Question

Find the balance in the account after the given period.

$1,400 principal earning 7%, compounded monthly, after 22 years

Answer 1

Answer:

  $6501.27

Step-by-step explanation:

The compound interest formula tells you the amount A resulting from investment of principal P at rate r compounded n times a year for t years:

  A = P(1+r/n)^(nt)

Filling in the given numbers and doing the arithmetic, we get ...

  A = $1400(1 +.07/12)^(12·22) ≈ $6501.27

The account balance will be $6501.27.