Question

Darnel opened a savings account and deposited 200.00 as principal the account earns 12%interest compounded monthly what is the balance after 9 years

Answer 1

We replace in the formula:

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

Where P is the initial balance, r is the interest rate, n is the number of times interest is applied per time period and t is the number of time periods. We replace as follows:

`A=(200)(1+(0.12)/(12))^((12)(9))`
`\Rightarrow A=585.78515851\Rightarrow A\approx585.79`

So, Darnel will earn approximately $585.79.