 # "y=a(1+r)^t I know this is a really basic question for this website, but I can't find it anywhere else. This is the question: ""If you deposit $3,750 in an account that pays 6% annual interest compounded monthly, what is the balance of the account after 11 years?"" The formula I'm using is y=a(1+r)t, with a being the initial amount, r being the rate in decimal form, and t is time relative to the rate, which makes y=3,750(1+.06)132 How do I solve for the ending amount (y)?" Staffangz 2022-09-14 Answered $y=a\left(1+r{\right)}^{t}$ I know this is a really basic question for this website, but I can't find it anywhere else. This is the question: "If you deposit$3,750 in an account that pays 6% annual interest compounded monthly, what is the balance of the account after 11 years?"
The formula I'm using is $y=a\left(1+r{\right)}^{t}$, with a being the initial amount, r being the rate in decimal form, and t is time relative to the rate, which makes $y=3,750\left(1+.06{\right)}^{132}$
How do I solve for the ending amount (y)?
You can still ask an expert for help

## Want to know more about Exponential growth and decay?

• Live experts 24/7
• Questions are typically answered in as fast as 30 minutes
• Personalized clear answers

Solve your problem for the price of one coffee

• Math expert for every subject
• Pay only if we can solve it Jovany Newman
A better formula to use would be
$y=a{\left(1+\frac{r}{k}\right)}^{kt},$
where k is the number of times the interest is compounded per year. So, plugging in your information gives
$y=3750{\left(1+\frac{.06}{12}\right)}^{132}=\mathrm{}7243.55$

We have step-by-step solutions for your answer!