Answer:
The answer to this question is:
A = 16,100(1.001)12t; $17,510
Step-by-step explanation:
The model function for compound interest is: [tex](16000[1.001]^{12t})[/tex]
The balance after 7 years will be $17409.
Let, P = the principle amount
r = the rate of interest, compounded monthly
t = the time period
Therefore, the amount will be
[tex]= P(1 + \frac{r}{1200})^{12t}[/tex]
Given, the invested amount is $16000.
The rate of interest is 1.2%, compounded monthly.
Total duration of investment is 7 years.
Therefore, the model function of this compound interest is:
= [tex]= (16000[1 + \frac{1.2}{1200}]^{12t})\\= (16000[1 +0.001]^{12t})\\= (16000[1.001]^{12t})\\[/tex]
The amount will be
[tex]= (16000[1.001]^{12t})\\= (16000[1.001]^{84})\\= 17409[/tex]
Therefore, after 7 years, the amount will be $17409.
Learn more about compound interest here: https://brainly.com/question/22739288
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