Question

Find the amount of money in an account after 5 years if $8000 is invested at 5 3/4% compounded monthly.

Please explain

Answer 1

You'll use the compound interest formula
\[\LARGE A = P*\left(1+\frac{r}{n}\right)^{n*t}\]
A = final amount in account after t years
P = amount deposited
r = interest rate
n = compound frequency (how many times you compound interest per year)
t = time in years

Answer 2

In your case

A = unknown
P = 8000
r = 0.0575
n = 12
t = 5


Things to note:
5 & 3/4% = 5.75% = 5.75/100 = 0.0575
n = 12 because compounding monthly means we compound 12 times a year

Answer 3

ok

Answer 4

that makes sense

Answer 5

so it would be $10657.40?

Answer 6

`so it would be $10657.40?`
correct

Answer 7

thank you jim_thompson5910