Melanie invests 7600 in a new savings account which earns 4.0% annual interest, compounded monthly. What will be the value of her investment after 2 years? Round to the nearest cent.

Solution

Solution

Amount : 8231.89

Solution steps

Translate the problem into an equation:

A = 7600 (1 + \frac{0.04}{12})^{12 \cdot 2}

7600 (1 + \frac{0.04}{12})^{12 \cdot 2} = 8231.88648 \dots

Round to the nearest hundredth:

8231.89

Amount : 8231.89

Popular Examples

the sum of twice a number and 5 is 13 less than the opposite of a number dale has 2000 to invest. his goal is to have 4, 800 in this investment in 8 years. at what annual rate compounded continuously will dale reach his goal?The sum of 6 times a number and 5 is equal to 7.MA110 Elementary Statistics Assignment 15 Topic 5c You roll a six sided die and pull a card from a deck. What is the probability that you will roll an even number and pull a face card from the deck?What is the result when the number 20 is increased by 50%?