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 Brigette's ice cream cone contains 16 grams of saturated fat. This is 80% of her total daily allowance of saturated fat. What is Brigette's total daily allowance of saturated fat?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?A few years ago, a total of 2681 thousand people lived in the metropolitan areas of Las Vegas, Nevada, and Sacramento, California. Sacramento had 285 thousand more residents than Las Vegas. What was the population of each metropolitan area?The sum of 6 times a number and 5 is equal to 7.