Barry opened a savings account and deposited 6,014.00 as principal. The account earns 12% interest, compounded monthly. What is the balance after 5 years?

Solution

Barry opened a savings account and deposited 6, 014.00 as principal. The account earns 12% interest, compounded monthly. What is the balance after 5 years?

Solution

Amount : 10925.61

Solution steps

Translate the problem into an equation:

A = 6014 (1 + \frac{0.12}{12})^{12 \cdot 5}

6014 (1 + \frac{0.12}{12})^{12 \cdot 5} = 10925.61394 \dots

Round to the nearest hundredth:

10925.61

Amount : 10925.61

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