Question

Find the balance in the account.
$700 principal earning 5%, compounded monthly, after 9 years
(A)$79,380.00
(B)$1,085.93
(C)$16,088.19
(D)$1,096.79

Answer 1

i = 0.05 -- Annual Interest Rate
j = I/12 -- Monthly Interest Rate
r = 1+j -- Monthly accumulation factor

Begin: 700
Month1: 700r
Month2: 700r^2
Month3: 700r^3
...
Month 72: ??