Emily puts 1,000.00 into an account to use for school expenses. The account earns 15% interest, compounded monthly. How much will be in the account after 8 years?

Solution

Emily puts 1, 000.00 into an account to use for school expenses. The account earns 15% interest, compounded monthly. How much will be in the account after 8 years?

Solution

Amount : 3295.51

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.15}{12})^{12 \cdot 8}

1000 (1 + \frac{0.15}{12})^{12 \cdot 8} = 3295.51324 \dots

Round to the nearest hundredth:

3295.51

Amount : 3295.51

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