Question

Scott invested $1,600 into a retirement account that earns 2.4% interest
compounded MONTHLY. What will be the balance of the account after 30
years? +

Answer 1

Answer:

A  = $3294.73

Step-by-step explanation:

Use the compound amount formula:

A = P(1 + r/n)^(n*t), where n represents the number of compounding periods per year.

Here,

A = $1600(1 + 0.024/12)^(12*30)

   = $1600*(1 + 0.002)^(12*30)

   = $1600(1.002)^360

A  = $3294.73