Calculate the future value. (Round your answer to two decimal places.)
\[
P=\$ 23,000, r=7 \% \text { compounded monthly, } t=7 \text { years }
\]
\[
\$
\]
Answer
\(\boxed{\$37,489.86}\) is the future value of the investment.
Step 1 ：Given that the principal amount (P) is $23,000, the annual interest rate (r) is 7% or 0.07, the interest is compounded monthly which means 12 times a year (n=12), and the time the money is invested for (t) is 7 years.
Step 2 ：The future value of an investment can be calculated using the formula: \(FV = P * (1 + r/n)^{nt}\)
Step 3 ：Substitute the given values into the formula: \(FV = 23000 * (1 + 0.07/12)^{12*7}\)
Step 4 ：After calculating, we find that the future value of the investment is approximately $37,489.86
Step 5 ：\(\boxed{\$37,489.86}\) is the future value of the investment.
