Mona is saving up money to buy a car. Mona puts 5,000.00 into an account which earns 12% interest, compounded monthly. How much will she have in the account after 3 years?

Solution

Mona is saving up money to buy a car. Mona puts 5, 000.00 into an account which earns 12% interest, compounded monthly. How much will she have in the account after 3 years?

Solution

Amount : 7153.84

Solution steps

Translate the problem into an equation:

A = 5000 (1 + \frac{0.12}{12})^{12 \cdot 3}

5000 (1 + \frac{0.12}{12})^{12 \cdot 3} = 7153.84391 \dots

Round to the nearest hundredth:

7153.84

Amount : 7153.84

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