Question

If 7800 is invested at 5.2% interest compounded monthly, how much will the investment be work in 11 years

Answer 1

Answer:

The investment will become $13803.

Step-by-step explanation:

We are given that a principal amount of $7800 is invested at an APR of 5.2% compounded monthly.

We have to calculate the matured sum of money after 11 years.

Now, the monthly interest rate is $\frac{5.2}{12} = 0.433\%$ and the principal is compounded for (11 × 12) = 132 times.

Now, using the formula of compound interest we will get the matured sum

= $7800(1 + \frac{0.433}{100})^{132} = 13803$ dollars (Approximate)

Therefore, the investment will become $13803. (Answer)