Russell opened a savings account and deposited 4,000.00 as principal. The account earns 10% interest, compounded monthly. What is the balance after 7 years?

Solution

Russell opened a savings account and deposited 4, 000.00 as principal. The account earns 10% interest, compounded monthly. What is the balance after 7 years?

Solution

Amount : 8031.68

Solution steps

Translate the problem into an equation:

A = 4000 (1 + \frac{0.1}{12})^{12 \cdot 7}

4000 (1 + \frac{0.1}{12})^{12 \cdot 7} = 8031.68061 \dots

Round to the nearest hundredth:

8031.68

Amount : 8031.68

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