Question

Ariana invested $400 in an account paying an interest rate of 3.8% compounded monthly. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 11 years?

Answer 1

Well you do 3.8% of $400 which is equal to 15.2 then you do 15.2 times 12 since there’s 12 months in a year and you’ll get 182.4 so that’s how much you’ll make in one year and since you wanna know for 11 years you times 182.4 times 11 then you’ll get 2,006.4 and since there was originally $400 in the account you do 2,006.40 + 400= $2406.40