Ask Question
3 October, 07:39

Sam deposited $4400 in a savings account earning 6% compounded monthly. If she makes no other deposits or withdrawals, how much will she have in her account in two years?

Group of answer choices

$4959.50

$4928.00

$9342.76

$9328.00

+5
Answers (1)
  1. 3 October, 09:22
    0
    Answer: $4959.50

    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 = 4400

    r = 6% = 6/100 = 0.06

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

    t = 2 years

    Therefore,

    A = 4400 (1 + 0.06/12) ^12 * 2

    A = 4400 (1+0.005) ^24

    A = 4400 (1.005) ^24

    A = 4959.5
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Sam deposited $4400 in a savings account earning 6% compounded monthly. If she makes no other deposits or withdrawals, how much will she ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers