Hunter invested 580 in an account paying an interest rate of 4.6% compounded monthly. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 19 years?

Lösung

H u n t er in v es t e d 580 in an a cco u n t p a y in g an in t eres t r a t e o f 4.6% co m p o u n d e d m o n t h l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w m u c h m o n ey, t o t h e n e a res t d o ll a r, w o u l d b e in t h e a cco u n t a f t er 19 ye a rs ?

Amount : 1387.64

Schritte zur Lösung

Translate the problem into an equation:

A = 580 (1 + \frac{0.046}{12})^{12 \cdot 19}

580 (1 + \frac{0.046}{12})^{12 \cdot 19} = 1387.63648 \dots

Round to the nearest hundredth:

1387.64

Amount : 1387.64