Autumn invested 2,800 in an account paying an interest rate of 6.2% compounded monthly. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 8 years?

Solution

Autumn invested 2, 800 in an account paying an interest rate of 6.2% compounded monthly. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 8 years?

Solution

Amount : 4592.12

Solution steps

Translate the problem into an equation:

A = 2800 (1 + \frac{0.062}{12})^{12 \cdot 8}

2800 (1 + \frac{0.062}{12})^{12 \cdot 8} = 4592.12316 \dots

Round to the nearest hundredth:

4592.12

Amount : 4592.12

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