Question

a 7,500.00 principal earns 4% annual interest, coumpound monthly. after 18 years, what is the balance in the account?

Answer 1

The value of the account would be $15,389.81.

The formula for compound interest is:
$A=p(1+\frac{r}{n})^{nt}$,
where p is the amount of principal, r is the rate expressed as a decimal number, n is the number of times the interest is compounded per year, and t is the number of years.  

Our interest rate is 4%=4/100 = 0.04.

Substituting our information we have:
$A=7500(1+\frac{0.04}{12})^{12*18}=15389.11$