Question

If a savings account of $48,900 is compounded annually at 19.1% annual interest, how much will the account be worth in 53 months? Round your answer to the nearest cent. Note: 360 days in a year and 30 days in a month.

Answer 1

Interest rate i=19.1% compounded annually.
Initial deposit, P=48900
Time t=53 months=53/12 years

Use compound interest formula
Future value,
F=P(1+i)^(t)=48900(1+0.191)^(53/12)
=  $105,824.40  (to the nearest cent)