If you deposit $850 into an account which earns 6% yearly interest compounded monthly, how much will be in the account after 4 y

Question

3 years ago

6

ears, assuming you never withdraw money from the account? Round your answer to the nearest cent if necessary and do not include the dollar sign.

1 answer:

luda_lava [24] · Answer 1 · 2022-07-31T16:45:33+03:00

Answer:

1079.9

Step-by-step explanation:

A = P(1 + $\frac{r}{n}$ )^nt

A: ending amount

P: principal (850)

r: interest rate in decimal form (.06)

n: compounding periods, 12 months in a year.

t: time in years (4)

= 850(1 + .06/12)^12(4)

= 850(1.005)⁴⁸

= 850(1.2704891)

= 1079.9157