Answer:
Acct. Balance in 30 years.
F = $1637953.99
Explanation:
EAR =[ (1 + (r/n) )^n] -1
Where EAR = effective annual rate
r = rate = 9.9% = 0.099
n = 12 monthly compounding interest
So therefore:
EAR = (1 + (.099/12))¹² - 1 = 0.1036 =10.36%
To calculate how large the acct. Balance will be , we have
F = A*[((1 + i)^n) - 1)/i]
Where f = future value of investment.
A = annual investment value = 9300
i = EAR = .1036
n = 30
F = 9300 * [ ((1 + 0.1036)^30 - 1)/ 0.1036]
F = $1637953.99
