Maddie puts 5,000.00 into an account to use for school expenses. The account earns 3% interest, compounded monthly. How much will be in the account after 9 years?

Solution

Maddie puts 5, 000.00 into an account to use for school expenses. The account earns 3% interest, compounded monthly. How much will be in the account after 9 years?

Solution

Amount : 6547.62

Solution steps

Translate the problem into an equation:

A = 5000 (1 + \frac{0.03}{12})^{12 \cdot 9}

5000 (1 + \frac{0.03}{12})^{12 \cdot 9} = 6547.61573 \dots

Round to the nearest hundredth:

6547.62

Amount : 6547.62

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