Question

Find the balance in the account. $700 principal earning 5%, compounded monthly, after 9 years

Answer 1

A=700×(1+0.05÷12)^(12×9)
A=1,096.79

Answer 2

Answer: The balance in the account after 9 years is $1085.93.

Step-by-step explanation:

Since we have given that

Principal amount = $700

Rate of interest = 5%

Number of years = 9

Since we have mentioned to use "Compound Interest " method:

As we know the formula for above i.e.

$A=P(1+\frac{r}{100})^n\\\\A=700(1+\frac{5}{100})^9\\\\A=\ 1085.93$

Hence, the balance in the account after 9 years is $1085.93.