I took five 100 bills down to the bank. They told me that if I kept all of that money in their bank for at least two years they would guarantee me 3% interest compounded monthly. How much will you have after 2 years

Solution

Solution

Amount : 5414.96

Solution steps

Translate the problem into an equation:

A = 5100 (1 + \frac{0.03}{12})^{12 \cdot 2}

5100 (1 + \frac{0.03}{12})^{12 \cdot 2} = 5414.96092 \dots

Round to the nearest hundredth:

5414.96

Amount : 5414.96

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