Polly is saving up money to buy a car. Polly puts 6,000.00 into an account which earns 5% interest, compounded monthly. How much will she have in the account after 7 years?

Solution

Polly is saving up money to buy a car. Polly puts 6, 000.00 into an account which earns 5% interest, compounded monthly. How much will she have in the account after 7 years?

Solution

Amount : 8508.22

Solution steps

Translate the problem into an equation:

A = 6000 (1 + \frac{0.05}{12})^{12 \cdot 7}

6000 (1 + \frac{0.05}{12})^{12 \cdot 7} = 8508.21631 \dots

Round to the nearest hundredth:

8508.22

Amount : 8508.22

Popular Examples

A coin is tossed five times. Find the probability of getting exactly three heads.Hunter opened a savings account and deposited 3,000.00. The account earns 5% interest, compounded annually. If he wants to use the money to buy a new bicycle in 3 years, how much will he be able to spend on the bike?The sum of a number and 19 is equal to the number divided by −17 28 is twelve less than 4 times a number.Find the number Dan is twice as old as Bob. The sum of their ages seven years ago was 13. How old are they now