Question

Beatrice has $4,200 in a savings account which earns 6% interest compounded monthly. She made no additional

withdrawals or deposits. What was the amount in the account at the end of the second month?

Answer 1

4719.12

Explanation:

6% of 4200 is 252 so we do 4200+252 to get 4452. Since it is compound interest we do an additional 6% from 4452 which is 267.12. 4452+267.12=4719.12, which is our answer. Hope this helps :)