At the end of 7 years, how much will an investment of $10,000 earn at an annual interest rate of 11% compounded monthly?

To determine how much an investment of $10,000 will earn at an annual interest rate of 11% compounded monthly over 7 years, you can use the formula for compound interest:

[ A = P \left(1 + \frac{r}{n}\right)^{nt} ]

Where:

• ( A ) is the amount of money accumulated after n years, including interest.
• ( P ) is the principal amount (the initial amount of money, which is $10,000).
• ( r ) is the annual interest rate (decimal).
• ( n ) is the number of times that interest is compounded per year.
• ( t ) is the number of years the money is invested.

In this case:

• ( P = 10,000 )
• ( r = 0.11 ) (11% expressed as a decimal)
• ( n = 12 ) (monthly compounding)
• ( t = 7 )

Plugging in the values:

[ A = 10,000 \left(1 + \frac{0.11}{12}\right)^{12 \times 7} ]

First, calculate the monthly interest rate:

[ \