Sagot :
Note: Consider we need to find the amount.
Given:
Principal = $38000
Rate of interest = 9% compounded monthly
Time = 7 years
To find:
The amount after 7 years.
Solution:
Formula for amount:
[tex]A=P\left(1+\dfrac{r}{n}\right)^{nt}[/tex]
Where, P is principal, r is the rate of interest in decimal, n is the number of times interest compounded in an year and t is the number of years.
The interest is compounded monthly, so n=12.
Putting [tex]P=38000, r=0.09,n=12, t=7[/tex] in the above formula, we get
[tex]A=38000\left(1+\dfrac{0.09}{12}\right)^{12(7)}[/tex]
[tex]A=38000\left(1+0.0075\right)^{84}[/tex]
[tex]A=38000\left(1.0075\right)^{84}[/tex]
[tex]A\approx 71181.67[/tex]
Therefore, the amount after 7 years is $71181.67.