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25 April, 21:23

You deposit $20,000 in an account that pays 7.77% annual interest. Find the balance after 2 years when the interest is compounded monthly.

The balance after 2 years is $.

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  1. 25 April, 23:10
    0
    =$23,350.802

    Step-by-step explanation:

    Compound Interest (A) = P (1+r/n) ^nt

    Where,

    P=principal=$20,000

    r=Interest rate=7.77%=7.77/100

    =0.0777

    n=number of periods=12 month in a year

    t=time=2 years

    (A) = P (1+r/n) ^nt

    =$20,000 (1+0.0777/12) ^12*2

    =$20,000 (1+0.006475) ^24

    =$20,000 (1.006475) ^24

    =$20,000 (1.1675401)

    =$23,350.802
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