Question

Nancy has $4,111 in an account that pays 1.07% interest compounded monthly. What is her

Answer 1

Answer:

$4199.88

Step-by-step explanation:

We're gonna use the compound interest formula: P = A(1 + r/n)^nt

P = final amount

A = starting amount (4,1111)

r = rate (0.0107)

n = times applied (12 since it's quarterly)

t = years (2 x 12 = 24)

P = 4,111(1 + 0.0107/12)^24

P = 4,111(1 + .0008916666...)^24

P = 4,111(1.021621)

P = 4,199.883441

Round it to 4199.88