If $7,000 is invested at 6% interest compounded monthly, the balance after 10 years will be $12,735.78.

Question

Quizplus · Accepted Answer

The given statement is true because the balance after 10 years can be calculated using the formula A = P(1 + r/n)^(nt), where P is the principal, r is the annual interest rate, n is the number of times per year that the interest is compounded, and t is the number of years. Plugging in the given values, we get A = 7000(1 + 0.06/12)^(12*10) = 12735.78.

If $7,000 Is Invested at 6% Interest Compounded Monthly, the Balance