suppose you deposit $10,000 in an account that pays 7% annual interest. What is the balance after three years if the interest is compounded monthly
You will have to figure out what the MONTHLY interest rate is and then treat it as a period of 36 MONTHS instead of 3 years.
7%/12mnths = .583333 % per month or .0058333
then
FV = PV (1 + i)^n = 10,000 (1.0058333)^36 = $ 12329.11
