Robert puts 200.00 into an account to use for school expenses. The account earns 1% interest, compounded monthly. How much will be in the account after 8 years?

Solution

Solution

Amount : 216.65

Solution steps

Translate the problem into an equation:

A = 200 (1 + \frac{0.01}{12})^{12 \cdot 8}

200 (1 + \frac{0.01}{12})^{12 \cdot 8} = 216.65019 \dots

Round to the nearest hundredth:

216.65

Amount : 216.65

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