If a savings account of $48,900 is compounded annually at 19.1% annual interest, how much will the account be worth in 53 months? Round your answer to the nearest cent. Note: 360 days in a year and 30 days in a month.

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If a savings account of $48,900 is compounded annually at 19.1% annual interest, how much will the account be worth in 53 months? Round your answer to the nearest cent. Note: 360 days in a year and 30 days in a month.

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Samir · Answer 1

Interest rate i=19.1% compounded annually.

Initial deposit, P=48900

Time t=53 months=53/12 years

Use compound interest formula

Future value,

F=P (1+i) ^ (t) = 48900 (1+0.191) ^ (53/12)

= $105,824.40 (to the nearest cent)