Question

You deposit $2,500 in a special savings account. The account earns interest at a rate of 3.25% compounded monthly. a. What amount will be in your account at the end of 5 months is no other deposits or withdrawals are made? b. What is the compound interest?

Answer 1

Answer:

1. $2906.25

2. $406.25

Step-by-step explanation:

2500+ (3.25% of 2500) (5)

2500+ (81.25) (5)

2500+ $406.25

=2906.25

3.25% of 2500

=406.25