Answer :
You invest $10,000 in an account with an APR of 2.75% monthly compounding. Find the accumulated balance in the account after 5 years.
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
P=$10,000
r=2.75%=2.75/100=0.0275
t=5 years
n=12
substitute in the formula
[tex]A=10,000(1+\frac{0.0275}{12})^{(5\cdot12)}[/tex][tex]A=\$11,472.21[/tex]