Question

1) you deposit $2,300 in a bank account. find the balance after 5 years for each of the following situations: is) the account pays 2.5% annual interest compounded monthly.

Answer 1

Well, After 5 years No interest you'd still have only 2,300 dollars in the bank.

But 5 years with interest you'd have 5750$ in the bank.

Explanation:

With no interest, their is nothing added to your bank account, if you don't take anything away from it either then you'd still have the exact same amount.

With 2.5% monthly interest you'd get 3250$ because...5years * 12 months = 60 months...60 months * 2.5% = 150%...2,300$ + 150% = 5750$.