Question

You deposit $4000 in an account that pays 2.88% annual interest. Find the balance after 2 years when the interest is compounded

monthly

Answer 1

$4,236.87

Step-by-step explanation:

A = $ 4,236.87

A = P + I where

P (principal) = $ 4,000.00

I (interest) = $ 236.87

This is the formula:

A = P(1 + r/n)nt

A = 4,000.00(1 + 0.0024/12)(12)(2)

A = $ 4,236.87