Ndiba invests 4,140 in a retirement account with a fixed annual interest rate of 3% compounded 12 times per year.What will the account balance be after 15 years?

Solution

Ndiba invests 4, 140 in a retirement account with a fixed annual interest rate of 3% compounded 12 times per year.What will the account balance be after 15 years?

Solution

Amount : 6489.17

Solution steps

Translate the problem into an equation:

A = 4140 (1 + \frac{0.03}{12})^{12 \cdot 15}

4140 (1 + \frac{0.03}{12})^{12 \cdot 15} = 6489.16734 \dots

Round to the nearest hundredth:

6489.17

Amount : 6489.17

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