Sara invests 570 in an account with the interest rate of 13% compounded monthly. How much money will she have in the account after 5 years? Write your answer as a number rounded to two decimal places, without the dollar symbol, any other symbols or spaces.

Solution

S a r a in v es t s 570 in an a cco u n t w i t h t h e in t eres t r a t e o f 13% co m p o u n d e d m o n t h l y . Ho w m u c h m o n ey w i ll s h e ha v e in t h e a cco u n t a f t er 5 ye a rs ? W r i t e yo u r an s w er a s a n u mb er ro u n d e d t o tw o d ec ima l pl a ces, w i t h o u t t h e d o ll a r sy mb o l, an y o t h er sy mb o l s or s p a ces .

Amount : 1088.05

Solution steps

Translate the problem into an equation:

A = 570 (1 + \frac{0.13}{12})^{12 \cdot 5}

570 (1 + \frac{0.13}{12})^{12 \cdot 5} = 1088.04822 \dots

Round to the nearest hundredth:

1088.05

Amount : 1088.05