Question

Twyla puts $1000 in a saving account that pays 4% interest, compounded monthly. How much money will in the account 11 years later if she makes no more deposits?

Answer 1

$1551.57

Explanation:

Each month, the account balance is multiplied by 1+.04/12, so after 132 months, it will be ...

$1000×(1 +.04/12)^132 ≈ $1551.57