Question

$1210 is invested in an account earning 11.5% interest compounded monthly. What is the balance at the end of 13 years? Group of answer choices

Answer 1

Answer:

Final amount = $5357.52

Step-by-step explanation:

Formula to be used,

Final amount = $\text{Initial amount}\times (1+\frac{r}{n})^{nt}$

Here, n = number of compounding in a year

t = Duration of investment

Now we substitute the given values in the question.

Final amount = $1210(1+\frac{0.115}{12})^{12\times 13}$

                      = $1210(1.009583)^{156}$

                      = 1210(4.4277)

                      = $5357.52