Question

Nancy has $4,111 in an account that pays 3.07% interest compounded monthly. What is her ending balance after two years?

Answer 1

Answer:

The ending amount in Nancy account after two years at 3.07% interest compounded monthly is  $ 4364.64

Step-by-step explanation:

Given as :

The principal amount in Nancy account = $4,111

The rate of interest compounded monthly = 3.07 %

The time period  = 2 years

Let The amount in her account after 2 years  = $ A

so, From compounded method

Amount = Principal × $(1+\frac{Rate}{12\times 100})^{12\times Time}$

Or, Amount = $4,111  × $(1+\frac{3.07}{12\times 100})^{12\times 2}$

Or, A = $4,111  × $(1+\frac{3.07}{1200})^{24}$

Or,  A= $4,111  × $(1.0025)^{24}$

∴ A = $4,111  × 1.0617

I.e  A = $ 4364.64

Hence The ending amount in Nancy account after two years at 3.07% interest compounded monthly is  $ 4364.64  Answer