Mariana puts 300.00 into an account to use for school expenses. The account earns 7% interest, compounded monthly. How much will be in the account after 4 years?

Solution

Solution

Amount : 396.62

Solution steps

Translate the problem into an equation:

A = 300 (1 + \frac{0.07}{12})^{12 \cdot 4}

300 (1 + \frac{0.07}{12})^{12 \cdot 4} = 396.61616 \dots

Round to the nearest hundredth:

396.62

Amount : 396.62

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