Penelope invested $65,000 in an account paying an interest rate of 2.3% compounded monthly. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 8 years?

Answer: $78150 would be in the account after 8 years

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P (1+r/n) ^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = $65,000

r = 2.3% = 2.3/100 = 0.023

n = 12 because it was compounded 12 times in a year.

t = 8 years

Therefore,.

A = 65000 (1 + 0.023/12) ^12 * 18

A = 65000 (1 + 0.00192) ^96

A = 65000 (1.00192) ^96

A = $78150