Answer: $2009.66
Step-by-step explanation:
A = P(1 + r/n)^nt
The balance at the end of 10 years in account after the credit union drawing 7% compounded monthly is $2009.66
Compound interest is the amount charged on the principal amount and the accumulated interest with a fixed rate of interest for a time period.
The formula for the final amount with the compound interest formula can be given as,
[tex]A=P\times\left(1+\dfrac{r}{n\times100}\right)^{nt}\\[/tex]
Here, A is the final amount (principal plus interest amount) on the principal amount P of with the rate r of in the time period of t.
A thousand dollars is left in a credit union drawing 7% compounded monthly. The balance at the end of 10 years has to be find out.
Here the data given are,
Put these values in the above formula as,
[tex]A=1000\times\left(1+\dfrac{7}{12\times100}\right)^{12\times10}\\A=2009.66[/tex]
Thus, the balance at the end of 10 years in account after the credit union drawing 7% compounded monthly is $2009.66
Learn more about the compound interest here;
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