Ryan is saving up money to buy a car. Ryan puts 6,852.00 into an account which earns 14% interest, compounded monthly. How much will he have in the account after 8 years?

Solution

Ryan is saving up money to buy a car. Ryan puts 6, 852.00 into an account which earns 14% interest, compounded monthly. How much will he have in the account after 8 years?

Solution

Amount : 20864.68

Solution steps

Translate the problem into an equation:

A = 6852 (1 + \frac{0.14}{12})^{12 \cdot 8}

6852 (1 + \frac{0.14}{12})^{12 \cdot 8} = 20864.67674 \dots

Round to the nearest hundredth:

20864.68

Amount : 20864.68

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