Ariana invested 400 in an account paying an interest rate of 3.8% compounded monthly. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 11 years?

Solution

Solution

Amount : 607.17

Solution steps

Translate the problem into an equation:

A = 400 (1 + \frac{0.038}{12})^{12 \cdot 11}

400 (1 + \frac{0.038}{12})^{12 \cdot 11} = 607.16714 \dots

Round to the nearest hundredth:

607.17

Amount : 607.17

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