Question

Camilla invests $5,000 into an account with a 1.8% interest rate that is compounded monthly. how much money will be in this account after 4 years?

round your answer to the nearest cent. do not round until you have calculated the final answer.
provide your answer below:

Answer 1

The final amount in Camilla's account after 4 years is approximately $5,248.86.

Step-by-step explanation:

To calculate the amount of money in Camilla's account after 4 years, we can use the formula for compound interest:

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

Where:

• A is the final amount of money
• P is the principal amount (initial investment)
• r is the interest rate (in decimal form)
• n is the number of times the interest is compounded per year
• t is the number of years

Plugging in the values for Camilla's account:

• P = $5,000
• r = 0.018 (1.8% as a decimal)
• n = 12 (compounded monthly)
• t = 4 (years)

Calculating A:

A = 5000(1 + 0.018/12)^(12*4)

After calculating, the final amount in Camilla's account is approximately $5,248.86.