Question

Charlie deposits $250 on the last day of each month into an account that earns 6% annual interest compounded monthly. Complete the table to show an exponential expression in the form ab^t that shows how much each $250 deposit is worth at the end of 12 months.​

Answer 1

A=$265.42

Explanation:

The formula to apply here is;

`A=P(1+(r)/(n) )^(nt)`

where;

A=amount at the end

P=principal amount=$250

r=rate of interest=0.06%

n=number of compounding per year=12

t=total number of years=1

`A=250(1+(0.06)/(12) )^(12*1) \\\\A=250(1.005)^(12)\\ \\\\A=265.42`