Question

Lea invests $8,333 in a savings account

with a fixed annual interest rate of 8%
compounded monthly. What will
the account balance be after 12 years?

Answer 1

The balance of Lea's account after 12 years of investment will be $ 21,694.04.

Explanation:

To calculate the compound interest generated by Lea's account, which has an annual interest of 8% compounded monthly, and whose investment will last for a period of 12 years, the following calculation must be performed:

X = 8,333 x (1 + 0.08 / 12) ^ 8x12

X = 21,694.04

Thus, the balance of Lea's account after 12 years of investment will be $ 21,694.04.