A bank offers a savings account with an interest rate of 7%,...

1. Use the compound interest formula:

The formula for compound interest when compounded times a year is , where:

is the amount of money accumulated after years, including interest.

is the principal amount (the initial deposit). Here, = $.

is the annual interest rate (in decimal form). Given an annual interest rate of , so .

is the number of times interest is compounded per year. Since it's compounded monthly, .

is the number of years. Here, years.

2. Substitute the values into the formula:

Algebra-1