Kamal is saving up money to buy a car. Kamal puts 6,831.00 into an account which earns 6% interest, compounded monthly. How much will he have in the account after 2 years?

Solution

Kamal is saving up money to buy a car. Kamal puts 6, 831.00 into an account which earns 6% interest, compounded monthly. How much will he have in the account after 2 years?

Solution

Amount : 7699.63

Solution steps

Translate the problem into an equation:

A = 6831 (1 + \frac{0.06}{12})^{12 \cdot 2}

6831 (1 + \frac{0.06}{12})^{12 \cdot 2} = 7699.62843 \dots

Round to the nearest hundredth:

7699.63

Amount : 7699.63

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