Question

Find the balance in the account.

$700 principal earning 5%, compounded monthly, after 9 years

Answer 1

\[A = P(1 + \frac{r}{n})^{rt}\]
Where A is the final amount
P is the principal, the amount initially invested
r is the interest rate
n is the number of compoundings per time period
t is the amount of time

Answer 2

what is the number of compoundings per time period??

Answer 3

I think it's safe to assume they mean 5% yearly interest. Compoundings are monthly. So how many times in a year does that mean?