Question

Tucker puts 200.00 into an account to use for school expenses the account earns 1%interest compounded monthly how much will be in the account after 5 years

Answer 1

Given Data:

The initial amount is, P =200

The rate of interest is, r = 1% = 0.01

The compounding is done monthly, so n = 12.

The duration is t = 5

Applying the formula to calculate the compound interest , we have,

`\begin{gathered} A=P(1+(r)/(n))^(nt) \\ A=200(1+(0.01)/(12))^(12*5)=210.249 \end{gathered}`

Thus, there will be 210.249 in the account.