Answer:
He will have $9,684.44 after 13 years
Explanation:
Data provided in the question:
Amount invested = $7,000
Interest rate, r = 2.5% compounded monthly = 0.025
Time period, t = 13 years
Now,
Final amount = Amount invested × [tex]\left( 1 + \frac{r}{n} \right)^{\Large{n \cdot t}}[/tex]
n = number of times compounded per year = 12 for compounded monthly
Thus,
Final amount = $7,000 × [tex]\left( 1 + \frac{0.025}{12} \right)^{\Large{12\times13}}[/tex]
or
Final amount = $7,000 × ( 1.002083 )¹⁵⁶
or
Final amount = $7,000 × 1.383491
or
Final amount = $9,684.44
Hence,
He will have $9,684.44 after 13 years
