Erin opened a savings account and deposited 3,000.00 as principal. The account earns 12% interest, compounded monthly. What is the balance after 6 years?

Solution

Erin opened a savings account and deposited 3, 000.00 as principal. The account earns 12% interest, compounded monthly. What is the balance after 6 years?

Solution

Amount : 6141.3

Solution steps

Translate the problem into an equation:

A = 3000 (1 + \frac{0.12}{12})^{12 \cdot 6}

3000 (1 + \frac{0.12}{12})^{12 \cdot 6} = 6141.29793 \dots

Round to the nearest hundredth:

6141.3

Amount : 6141.3

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