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Autumn deposited $500 into a savings account with a 1.8% interest rate, compounding monthly. Use the compound interest formula to determine how much money she will have after 4 years. Show your work.

User Iceteea
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1 Answer

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By definition we have that the compound interest formula is:


image

Where

A: amount

P: principal

r: interest rate (decimal)

n: number of times interest is compounded per year

t: time years

Substituting values we have:


image

Answer:

after 4 years she will have about:


y = 537.3

User Evgeny Sureev
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