Judy opened a savings account and deposited 800.00 as principal. The account earns 4% interest, compounded monthly. What is the balance after 4 years?

Solution

Solution

Amount : 938.56

Solution steps

Translate the problem into an equation:

A = 800 (1 + \frac{0.04}{12})^{12 \cdot 4}

800 (1 + \frac{0.04}{12})^{12 \cdot 4} = 938.55893 \dots

Round to the nearest hundredth:

938.56

Amount : 938.56

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