Arianna opened a savings account and deposited 500.00 as principal. The account earns 5% interest, compounded monthly. What is the balance after 9 years?

Solution

Solution

Amount : 783.42

Solution steps

Translate the problem into an equation:

A = 500 (1 + \frac{0.05}{12})^{12 \cdot 9}

500 (1 + \frac{0.05}{12})^{12 \cdot 9} = 783.42332 \dots

Round to the nearest hundredth:

783.42

Amount : 783.42

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