Given:
The principal value = $10,000
Rate of interest = 8.5% compounded monthly.
To find:
The amount of money in the account in 15 years.
Solution:
The formula for amount is:
[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, t is the number of years.
Number of months in an year is 12. So, n=12.
Substitute [tex]P=10000, r=0.085, n=12, t=15[/tex] in the above formula.
[tex]A=10000\left(1+\dfrac{0.085}{12}\right)^{12(15)}[/tex]
[tex]A=10000\left(\dfrac{12.085}{12}\right)^{180}[/tex]
[tex]A=35626.53335[/tex]
[tex]A\approx 35626.53[/tex]
Therefore, the amount of money in the account in 15 years is $35626.53.
