use the appropriate compound interest formula to compute the balance in the account after the stated period of time. 9000 dollars is invested for 17 years with an APR of 2.54% and monthly compounding. what is the balance in the account after 17 years

Solution

u se t h e a pp ro p r ia t e co m p o u n d in t eres t f or m u l a t o co m p u t e t h e ba l an ce in t h e a cco u n t a f t er t h e s t a t e d p er i o d o f t im e . 9000 d o ll a rs i s in v es t e d f or 17 ye a rs w i t h an A PR o f 2.54% an d m o n t h l y co m p o u n d in g . w ha t i s t h e ba l an ce in t h e a cco u n t a f t er 17 ye a rs

Amount : 13853.92

Solution steps

Translate the problem into an equation:

A = 9000 (1 + \frac{0.0254}{12})^{12 \cdot 17}

9000 (1 + \frac{0.0254}{12})^{12 \cdot 17} = 13853.92010 \dots

Round to the nearest hundredth:

13853.92

Amount : 13853.92