Question

Jamie invested $1,500 in a savings account. The account earns 3.8% interest, compounded monthly. How much money will Jamie have in her account after 4 years if she does not make any deposits or withdrawals? (round to the nearest dollar)

Answer 1

C) $1,746

Explanation:

Answer 2

Answer: $1745.82

Explanation:

`A=P\bigg(1+(r)/(n)\bigg)^(n\cdot t)\qquad \text{where:}\\\\\bullet A=\text{Amount accrued (account balance)}\\\bullet P=\text{Principal (amount invested)}\\\bullet r=\text{interest rate (in decimal form)}\\\bullet n=\text{number of times compounded in one year}\\\bullet t=\text{time (number of years)}`

`\text{The given information is:}\\\bullet A=unknown\\\bullet P=1500\\\bullet r=3.8\% \rightarrow 0.038\\\bullet n=monthly \rightarrow 12\\\bullet t=4\\\\\\A=1500\bigg(1+(0.038)/(12)\bigg)^(12* 4)\\\\.\ =1745.82`