Investment: If $8000 is invested in an account earning 4% interest compounded monthly, how much will be in the account after 7 years? Round to two decimal places.
Added by Terri W.
Step 1
Since the annual interest rate is 4%, we can divide that by 12 to find the monthly interest rate: Monthly interest rate = $\frac{4\%}{12} = \frac{4}{12} \% = \frac{1}{3} \% = 0.0133$ Now, we can use the formula for compound interest: $A = P(1 + Show more…
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