Isaiah invests 2,975 in a retirement account with a fixed annual interest rate of 3% compounded 12 times per year. What will the account balance be after 13 years?

Solution

Isaiah invests 2, 975 in a retirement account with a fixed annual interest rate of 3% compounded 12 times per year. What will the account balance be after 13 years?

Solution

Amount : 4391.88

Solution steps

Translate the problem into an equation:

A = 2975 (1 + \frac{0.03}{12})^{12 \cdot 13}

2975 (1 + \frac{0.03}{12})^{12 \cdot 13} = 4391.87986 \dots

Round to the nearest hundredth:

4391.88

Amount : 4391.88

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