Mark puts 2,000.00 into an account to use for school expenses. The account earns 15% interest, compounded monthly. How much will be in the account after 8 years?

Solution

Mark puts 2, 000.00 into an account to use for school expenses. The account earns 15% interest, compounded monthly. How much will be in the account after 8 years?

Solution

Amount : 6591.03

Solution steps

Translate the problem into an equation:

A = 2000 (1 + \frac{0.15}{12})^{12 \cdot 8}

2000 (1 + \frac{0.15}{12})^{12 \cdot 8} = 6591.02648 \dots

Round to the nearest hundredth:

6591.03

Amount : 6591.03

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