Jim puts 3,527.00 into an account to use for school expenses. The account earns 2% interest, compounded monthly. How much will be in the account after 8 years?

Solution

Jim puts 3, 527.00 into an account to use for school expenses. The account earns 2% interest, compounded monthly. How much will be in the account after 8 years?

Solution

Amount : 4138.42

Solution steps

Translate the problem into an equation:

A = 3527 (1 + \frac{0.02}{12})^{12 \cdot 8}

3527 (1 + \frac{0.02}{12})^{12 \cdot 8} = 4138.42162 \dots

Round to the nearest hundredth:

4138.42

Amount : 4138.42

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