Lena opened a savings account and deposited 1,000.00 as principal. The account earns 2% interest, compounded monthly. What is the balance after 9 years?

Solution

Lena opened a savings account and deposited 1, 000.00 as principal. The account earns 2% interest, compounded monthly. What is the balance after 9 years?

Solution

Amount : 1197.04

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.02}{12})^{12 \cdot 9}

1000 (1 + \frac{0.02}{12})^{12 \cdot 9} = 1197.03799 \dots

Round to the nearest hundredth:

1197.04

Amount : 1197.04

Popular Examples

There are 4 consecutive integers that add up to-62. What is the greatest of the 4 integers?Vince bikes 7.1 miles each day. How far does Vince bike in 19 days?the product of two consecutive even integers is 168 in an equation Colton is saving up money to buy a car. Colton puts 5,683.00 into an account which earns 12.96% interest, compounded quarterly. How much will he have in the account after 10 years?The diameter of a circle is 13 ft. Find its circumference in terms of pipi.Answer