Question

Nancy has $4,111 in an account that pays 3.07% interest compounded monthly. What is her ending balance after two years?

Answer 1

The ending amount in Nancy account after two years at 3.07% interest compounded monthly is $ 4364.64

Explanation:

Given as :

The principal amount in Nancy account = $4,111

The rate of interest compounded monthly = 3.07 %

The time period = 2 years

Let The amount in her account after 2 years = $ A

so, From compounded method

Amount = Principal ×
`(1+(Rate)/(12* 100))^(12* Time)`

Or, Amount = $4,111 ×
`(1+(3.07)/(12* 100))^(12* 2)`

Or, A = $4,111 ×
`(1+(3.07)/(1200))^(24)`

Or, A= $4,111 ×
`(1.0025)^(24)`

∴ A = $4,111 × 1.0617

I.e A = $ 4364.64

Hence The ending amount in Nancy account after two years at 3.07% interest compounded monthly is $ 4364.64 Answer