### Home > CCG > Chapter 12 > Lesson 12.1.1 > Problem12-9

12-9.

A credit union offers a long-term account that pays $6$% interest compounded monthly and your college fund currently contains $8500$. Homework Help ✎

1. What is the monthly multiplier?

Add one to the percent interest, remember that the interest is compounded monthly so you must divide the interest by $12$.

2. Write a function of the form $f(t) = ab^t$ that represents the monthly situation.

$f(t) = 8500(1.005)^t$

3. At the current rate, what will be the value of the account in $5$ years?