Emmett opened a savings account and deposited 300.00 as principal. The account earns 12% interest, compounded monthly. What is the balance after 4 years?

Solution

Solution

Amount : 483.67

Solution steps

Translate the problem into an equation:

A = 300 (1 + \frac{0.12}{12})^{12 \cdot 4}

300 (1 + \frac{0.12}{12})^{12 \cdot 4} = 483.66782 \dots

Round to the nearest hundredth:

483.67

Amount : 483.67

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