Janice puts 10,000.00 into an account to use for school expenses. The account earns 1% interest, compounded monthly. How much will be in the account after 6 years?

Solution

Janice puts 10, 000.00 into an account to use for school expenses. The account earns 1% interest, compounded monthly. How much will be in the account after 6 years?

Solution

Amount : 10618.1

Solution steps

Translate the problem into an equation:

A = 10000 (1 + \frac{0.01}{12})^{12 \cdot 6}

10000 (1 + \frac{0.01}{12})^{12 \cdot 6} = 10618.10015 \dots

Round to the nearest hundredth:

10618.1

Amount : 10618.1

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