Tony is saving money to purchase a new TV that costs $276.99. He has $135 in his savings account already. If he earns $8.50 per
1 answer:
You might be interested in
Answer:
$8,430.23
Explanation:
From the statement of the problem:
• The principal amount = $8,000
,• Interest Rate = 5%
,• Compounding Period = 12 (Monthly)
The compound interest formula is given as:
Using the compound period formula, we first, calculate the amount in her account at the end of 1 year.
This means that the interest she made during the first year is:
Next, calculate the amount in her account at the end of the second year.
Since she paid back all the interest she made during the first year, the amount Diana was left with is:
Diana was left with $8,430.23.