I took five 100 bills down to the bank. They told me that if I kept all of that money in their bank for at least two years they would guarantee me 3% interest compounded monthly. How much will you have after 2 years

Solução

I t oo k f i v e 100 bi ll s d o w n t o t h e bank . T h ey t o l d m e t ha t i f I k e pt a ll o f t ha t m o n ey in t h e i r bank f or a t l e a s t tw o ye a rs t h ey w o u l d gu a r an t ee m e 3% 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 w i ll yo u ha v e a f t er 2 ye a rs

Amount : 5414.96

Passos da solução

Translate the problem into an equation:

A = 5100 (1 + \frac{0.03}{12})^{12 \cdot 2}

5100 (1 + \frac{0.03}{12})^{12 \cdot 2} = 5414.96092 \dots

Round to the nearest hundredth:

5414.96

Amount : 5414.96