Peyton invested 690 in an account paying an interest rate of 5.6% 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?

Solución

P ey t o n in v es t e d 690 in an a cco u n t p a y in g an in t eres t r a t e o f 5.6% co m p o u n d e d m o n t h l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w m u c h m o n ey, t o t h e n e a res t t e n d o ll a rs, w o u l d b e in t h e a cco u n t a f t er 8 ye a rs ?

Amount : 1078.85

Pasos de solución

Translate the problem into an equation:

A = 690 (1 + \frac{0.056}{12})^{12 \cdot 8}

690 (1 + \frac{0.056}{12})^{12 \cdot 8} = 1078.84845 \dots

Redondear al más cercano hundredth:

1078.85

Amount : 1078.85