Question

Carter puts 600.00 into an account to use for school expenses the account earns 12%interest compounded monthly how much will be in the account after 7 years

Answer 1

1) In this case, Carter will invest 600 with an interest rate of 12% compounded monthly in 7 years, his future value (A) will be found by:

$\begin{gathered} A=P(1\text{ +}\frac{r}{n})^{nt} \\ A=600(\text{ 1+}\frac{0.12}{12})^{12\cdot7} \\ A=600(1+0.01)^{84} \\ A=600(1.01)^{84} \\ A=600(2.306722744) \\ A=1384.03 \end{gathered}$

2) So Carter, will take $1384.03 from his investment after 7 years, considering that within that period no other deposit will be made.