Find the balance in the account.
$700 principal earning 5%, compounded monthly, after 9 years
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 ending balance
P = the principal amount
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years
In this case:
P = $700
r = 0.05 (5% expressed as a decimal)
n = 12 (compounded monthly)
t = 9 years
A = 700(1 + 0.05/12)^(12*9)
A = 700(1 + 0.0041666667)^(108)
A ≈ 700(1.0041666667)^108
A ≈ 700(1.6470098367)
A ≈ $1,152.91
Therefore, the balance in the account after 9 years would be approximately $1,152.91.