Ryan invested 5,900 in an account paying an interest rate of 5% compounded monthly. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 11 years?

Solution

Ryan invested 5, 900 in an account paying an interest rate of 5% compounded monthly. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 11 years?

Solution

Amount : 10214.51

Solution steps

Translate the problem into an equation:

A = 5900 (1 + \frac{0.05}{12})^{12 \cdot 11}

5900 (1 + \frac{0.05}{12})^{12 \cdot 11} = 10214.51441 \dots

Round to the nearest hundredth:

10214.51

Amount : 10214.51

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