Question

Maya deposits $5000 into a checking account that pays 0.75% annual interest compounded monthly. What will be the balance after 8 years? Round to the nearest cent.

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$5000\\ r=rate\to 0.75\%\to (0.75)/(100)\dotfill &0.0075\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &8 \end{cases} \\\\\\ A=5000\left(1+(0.0075)/(12)\right)^(12\cdot 8)\implies A=5000(1.000625)^(96)\implies A\approx 5309.08`