Britney opened a savings account and deposited 300.00 as principal. The account earns 11% interest, compounded monthly. What is the balance after 8 years?

Solution

Solution

Amount : 720.38

Solution steps

Translate the problem into an equation:

A = 300 (1 + \frac{0.11}{12})^{12 \cdot 8}

300 (1 + \frac{0.11}{12})^{12 \cdot 8} = 720.37623 \dots

Round to the nearest hundredth:

720.38

Amount : 720.38

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