Question

Esther's savings account earns an annual interest rate of 3.6% compounded monthly. She currently has $50 in the account.

Use the interest rate and the formula for the future value of an investment to complete each statement.

Type the correct answer in each box. Round your answers to the nearest hundredth if necessary.

Answer 1

0.3%, $51.67

Step-by-step explanation:

The interest rate per month is 3.6%/12 = 0.3%. In the first month, Ester puts the initial $50 into the account. So, the interest for that $50 will be compounded for only 11 of the 12 months. So the initial $50 will be worth 50(1.003)11, or $51.67, at the end of 12 months.

Answer 2

interest rate= 0.3 and she will have 53.73 after 2 years

Explanation:

plato fam