Janelle opened a savings account and deposited 8,000.00 as principal. The account earns 2% interest, compounded monthly. What is the balance after 7 years?

Solution

Janelle opened a savings account and deposited 8, 000.00 as principal. The account earns 2% interest, compounded monthly. What is the balance after 7 years?

Solution

Amount : 9201.12

Solution steps

Translate the problem into an equation:

A = 8000 (1 + \frac{0.02}{12})^{12 \cdot 7}

8000 (1 + \frac{0.02}{12})^{12 \cdot 7} = 9201.11805 \dots

Round to the nearest hundredth:

9201.12

Amount : 9201.12

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