You deposit $20,000 in an account that pays 7.77% annual interest. Find the balance after 2 years when the interest is compounded monthly.

The balance after 2 years is $.

=$23,350.802

Step-by-step explanation:

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

Where,

P=principal=$20,000

r=Interest rate=7.77%=7.77/100

=0.0777

n=number of periods=12 month in a year

t=time=2 years

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

=$20,000 (1+0.0777/12) ^12*2

=$20,000 (1+0.006475) ^24

=$20,000 (1.006475) ^24

=$20,000 (1.1675401)

=$23,350.802