Question

Autumn invested $2,800 in an account paying an interest rate of 6.2% compounded

monthly. Assuming no deposits or withdrawals are made, how much money, to the
nearest ten dollars, would be in the account after 8 years?

Answer 1

4590Explanation:

Answer 2

Answer: There would be $4590 (approx.) in the account after 8 years.

Explanation:

Formula to calculate accumulated amount if compounded monthly :

`A= P(1+(r)/(12*100))^(12t)`, where P+ principal value, r = rate of interest , t = time.

Given: P=$2,800 , r = 6.2%

t= 8 years

Substitute all values in the formula , we get

`A=2800(1+(6.2)/(1200))^(12*8)\\\\=2800(1+0.005167)^(96)\\\\=2800(1.005167)^(96)\\\\=2800(1.64009619996)=4592.2693\approx4590\text{ [Rounded to the nearest ten dollars] }`

Hence, There would be $4590 (approx.) in the account after 8 years.