Bridgette opened a savings account and deposited 400.00 as principal. The account earns 7% interest, compounded monthly. What is the balance after 10 years?

Solution

Solution

Amount : 803.86

Solution steps

Translate the problem into an equation:

A = 400 (1 + \frac{0.07}{12})^{12 \cdot 10}

400 (1 + \frac{0.07}{12})^{12 \cdot 10} = 803.86455 \dots

Round to the nearest hundredth:

803.86

Amount : 803.86

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