Question

Use the appropriate compound interest formula to compute the balance in the account after the stated period of time ?$8000 is invested for 11 years with an APR of 5?% and monthly compounding. The balance in the account after 11 years is ?$

Answer 1

Total amount(A) = P(1 + r/12)^12t

                           = 8000(1 + 5/1200)^{12 * 11}

                           = 8000(1205/1200)¹³²

                           = 13850.189