Lila opened a savings account and deposited 500.00 as principal. The account earns 14% interest, compounded monthly. What is the balance after 10 years?

Solution

Solution

Amount : 2011.24

Solution steps

Translate the problem into an equation:

A = 500 (1 + \frac{0.14}{12})^{12 \cdot 10}

500 (1 + \frac{0.14}{12})^{12 \cdot 10} = 2011.23532 \dots

Round to the nearest hundredth:

2011.24

Amount : 2011.24

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