If peter deposited $6500 into an account paying annual interest 7% compound monthly, how much will be in the account for 7 years

The amount in account for 7 years is $ 10594.96

Given that peter deposited $6500 into an account paying annual interest 7% compound monthly

To find: Total amount in account after 7 years

The formula for total amount using compound interest is given as:

Where "p" is the principal amount

"A" is the future value of the investment/loan, including interest

"r" is annual interest rate (decimal)

"n" is the number of times interest is compounded per unit "t"

"t" is the time the money is invested

Here in this sum,

p = $ 6500

t = 7 years

n = 12 (since interest is compounded monthly, and there are 12 months in one year)

Substituting the values in formula, we get

Thus the amount in account for 7 years is $ 10594.96

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