Find the balance in the account.
$700 principal earning 5%, compounded monthly, after 9 years
$16,088.19
$1,085.93
$1,096.79
$79,380.00
To find the balance in the account after 9 years, we can use the compound interest formula:
A = P (1 + r/n)^(nt)
Where:
A = the final amount in the account
P = the principal amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times compounded per year
t = number of years
In this case, the principal (P) is $700, the annual interest rate (r) is 5% (or 0.05 as a decimal), the compounding period (n) is monthly, and the number of years (t) is 9.
Substituting these values into the formula, we have:
A = 700 (1 + 0.05/12)^(12*9)
Solving this equation, we find that the balance in the account after 9 years is approximately $1,096.79.
Therefore, the correct answer is $1,096.79.