Question

Ariana invested $400 in an account paying an interest rate of 3.8% compounded monthly. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 11 years?

Answer 1

Using the compound interest formula A = P (1 + r/n)^(nt) with the given values, we determine that Ariana would have approximately $580 in her account after 11 years, rounded to the nearest ten dollars.

Step-by-step explanation:

The question involves calculating the future value of an investment with compound interest. To find out how much money would be in the account after 11 years when $400 is invested at an interest rate of 3.8% compounded monthly, we use the compound interest formula:

A = P (1 + r/n)^(nt)

Where:

Substituting the given values:

A = 400(1 + 0.038/12)^(12*11)

Now we calculate the value of A:

A ≈ $584.67

Therefore, rounded to the nearest ten dollars, Ariana would have approximately $580 in her account after 11 years.