Stefan is saving up money to buy a car. Stefan puts 5,813.00 into an account which earns 8.82% interest, compounded monthly. How much will he have in the account after 5 years?

Solution

Stefan is saving up money to buy a car. Stefan puts 5, 813.00 into an account which earns 8.82% interest, compounded monthly. How much will he have in the account after 5 years?

Solution

Amount : 9020.36

Solution steps

Translate the problem into an equation:

A = 5813 (1 + \frac{0.0882}{12})^{12 \cdot 5}

5813 (1 + \frac{0.0882}{12})^{12 \cdot 5} = 9020.35789 \dots

Round to the nearest hundredth:

9020.36

Amount : 9020.36

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