Question

1. Alice invests $1000 at 2% interest compounded monthly over a 5 year period. Assuming no other money is deposited or withdrawn, what is the total amount of money in her account after 5 years? (Round to the nearest cent)​

Answer 1

$1,105.08.

Explanation:

Given that Alice invests $ 1000 at 2% interest compounded monthly over a 5 year period, assuming no other money is deposited or withdrawn, to determine what is the total amount of money in her account after 5 years, the following calculation must be performed:

X = 1,000 (1 + 0.02 / 12) ^ 5x12

X = 1,105.08

Thus, the amount of money in her account after 5 years would be $ 1,105.08.