Eva puts 500.00 into an account to use for school expenses. The account earns 3% interest, compounded monthly. How much will be in the account after 8 years?

Solution

Solution

Amount : 635.43

Solution steps

Translate the problem into an equation:

A = 500 (1 + \frac{0.03}{12})^{12 \cdot 8}

500 (1 + \frac{0.03}{12})^{12 \cdot 8} = 635.43423 \dots

Round to the nearest hundredth:

635.43

Amount : 635.43

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