Colette opened a savings account and deposited 400.00 as principal. The account earns 12% interest, compounded monthly. What is the balance after 2 years?

Solución

Solución

Amount : 507.89

Pasos de solución

Translate the problem into an equation:

A = 400 (1 + \frac{0.12}{12})^{12 \cdot 2}

400 (1 + \frac{0.12}{12})^{12 \cdot 2} = 507.89385 \dots

Round to the nearest hundredth:

507.89

Amount : 507.89

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