Question

alan deposited 2500 in an investment account that pays an interest rate of 7.8% compounded monthly if he makes no other deposirs or withdrawlshow much will he have in the account in 15 years

Answer 1

Use Compound Interest Monthly Formula:
A = P(1 + r/n)^nt
A = Future Amount
P = Initial Amount
r = Interest rate
n = monthly
= 12 months
t = 15

In this case:
P = 2500
r = 7.8%
n = 12 months
t = 15 years

7.8% = 7.8/100
= 0.078

2500(1 + 0.078/12)^12(15)
= 8024.54 —> Final Answer.