Stacy opened a savings account and deposited 500.00 as principal. The account earns 5% interest, compounded monthly. How much interest will she earn after 4 years?Round your answer to the nearest cent.

Solução

St a cy o p e n e d a s a v in g s a cco u n t an d d e p os i t e d 500.00 a s p r in c i p a l . T h e a cco u n t e a r n s 5% in t eres t, co m p o u n d e d m o n t h l y . Ho w m u c h in t eres t w i ll s h e e a r n a f t er 4 ye a rs ? R o u n d yo u r an s w er t o t h e n e a res t ce n t .

Interest : 110.45

Passos da solução

Translate the problem into an equation:

610.44767 \dots = 500 + I

Resolver para

I, 610.44767 \dots = 500 + I : I = 110.45

Interest : 110.45