400,771 views
20 votes
20 votes
You deposit $ 3,508 in an account earning 10 % interest compounded monthly. How much will you have in the account in 4 years?

User Aaronjg
by
2.9k points

1 Answer

12 votes
12 votes

The amount of money A in an account with an interest rate r compounded 12 times a year, after t years and if a principal P is invested, is given by the formula:


A=P(1+(r)/(12))^(12* t)

Replace P=3,508, r=10/100 and t=4 to find the amount of money that the account will be worth after 4 years:


A=3508(1+(0.1)/(12))^(12*4)=3508(1.489354099\ldots)=5224.654178\ldots

Therefore, to the nearest cent, the amount of money in the account after 4 years will be:


5224.65

User Btbenjamin
by
2.8k points