Question

1.
Harriet has deposited $693 in a savings account that earns interest at a rate of 4.6% compounded monthly. What will the account balance be in thirteen years? (2 points)

$1,258.77

$1,243.50

$724.88

$3,187.80

Answer 1

Answer:

Future amount (A) = $1,258.77 (Approx)

Step-by-step explanation:

Given:

Amount deposit (p) = $693

Rate of interest monthly (r) = 4.9% / 12 = 0.003833

Number of month (n) = 13 × 12 = 156

Find:

Future amount (A)

Computation:

$A = p [1+r]^n \\\\ A = 693 [1+0.003833]^{156}\\\\ A= 693[1.8163]\\\\ A = 1258.77$

Future amount (A) = $1,258.77 (Approx)