Kyle opened a savings account and deposited 2,000.00 as principal. The account earns 10% interest, compounded monthly. What is the balance after 6 years?

Solution

Kyle opened a savings account and deposited 2, 000.00 as principal. The account earns 10% interest, compounded monthly. What is the balance after 6 years?

Solution

Amount : 3635.19

Solution steps

Translate the problem into an equation:

A = 2000 (1 + \frac{0.1}{12})^{12 \cdot 6}

2000 (1 + \frac{0.1}{12})^{12 \cdot 6} = 3635.18856 \dots

Round to the nearest hundredth:

3635.19

Amount : 3635.19

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