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The future amount is $3697.52, if a a single $2700 deposit in an account with an APR of 4.5% that compounds interest monthly and is invested for 7 years.
Step-by-step explanation:
The given is,
A single deposit amount - $ 2700
APR - 4.5%
( Compounded monthly )
Period - 7 years
Step:1
Formula to find future amount with an APR compounded monthly,
.......................(1)
Where, A - Future amount
P - Initial deposit
r - Interest rate
n - Number of compounding in a year
t - No.of years
From given,
P = $ 2700
r = 4.5%
n = 12 (∵ For monthly n becomes 12 )
t = 7 years
Equation (1) becomes,
A = $3697.52
Result:
The future amount is $3697.52, if a a single $2700 deposit in an account with an APR of 4.5% that compounds interest monthly and is invested for 7 years.