if you deposit $900 today , how much will be in your account in 12 years if yearly interest is 4.25% compounded monthly

Question

compound interest

Answer 1

the underlying formula that you want to use here for compound interest is

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

in this case for compounded monthly that means taking

A = 900(1 + 0.0425/12)^(12*12)

A = 1497.41

meaning that you will have approximately $1,497.41 in your account in 12 years

Answer 2

FV = 900(1 + 0.0425/12)^12·12 = $1497.41