Lily opened a savings account and deposited 763.00 as principal. The account earns 6% interest, compounded monthly. What is the balance after 8 years?

Solution

Solution

Amount : 1231.59

Solution steps

Translate the problem into an equation:

A = 763 (1 + \frac{0.06}{12})^{12 \cdot 8}

763 (1 + \frac{0.06}{12})^{12 \cdot 8} = 1231.59088 \dots

Round to the nearest hundredth:

1231.59

Amount : 1231.59

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