Question

Question 2

Answer 1

Therefore $754.94 will be in account after 15 years.

Step-by-step explanation:

Given , Sarah opens a saving account that has a 2.75% annual interest rate , compounded monthly. She deposits $500 into the account.

P = $500, r = 2.75% = 0.0275 , t = 15 years and n= 12

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

                 $=\ 500(1+\frac{0.0275}{12})^{(12\times15)}$

                  =$754.94

Therefore $754.94 will be in account after 15 years.