Rebecca puts 5,000.00 into an account to use for school expenses. The account earns 8% interest, compounded monthly. How much will be in the account after 8 years?

Solution

Rebecca puts 5, 000.00 into an account to use for school expenses. The account earns 8% interest, compounded monthly. How much will be in the account after 8 years?

Solution

Amount : 9462.29

Solution steps

Translate the problem into an equation:

A = 5000 (1 + \frac{0.08}{12})^{12 \cdot 8}

5000 (1 + \frac{0.08}{12})^{12 \cdot 8} = 9462.28609 \dots

Round to the nearest hundredth:

9462.29

Amount : 9462.29

Popular Examples

The radius of a circle is 8.4 m. Find the circumference if you borrow 500 for 10 years at an annual interest rate of 30% what is the total amount of money you will pay back Nine more than the quotient of a number and 6 is equal to 4 The sum of two numbers is 29. Half the larger number increased by two is same as the smaller number. Find the numbers.10 increased by the product of a number and 7 is less than-30