Question

Hannah deposited $50 in a bank account earning 12% interest, compounded annually. How much money will she have in her savings account in 60 months??

Answer 1

Price in 60 months P

1 year= 12 months

5 years = 60 months

P = 50•( 1 + 12/100)^5

P= 50 • (1.12)^5 = 50• 1.762

= 88.12

Then answer is

Savings in 60 months= $88.12