Question

Jackson puts $600.00 into an account to use for school expenses the account earns 2% interest compounded monthly how much will be in the account after 10 years

Answer 1

In order to determine what is the value of the account after 10 years, use the following formula:

$C^{\prime}=C_o(1+\frac{r}{100})^n$

where:

C': final amount of money = ?

Co: intial amount of money = $600.00

r: monthly rate interest = 2%

n: number of months = 43 years = 516 months

Replace the previous values of the parameters into the formula for C':

$\begin{gathered} C^{\prime}=(600.00)(1+\frac{2}{100})^{516} \\ C^{\prime}=(600.00)(27,396.1) \\ C^{\prime}=16,437,655.7 \end{gathered}$

Hence, the final value of the account is $16,437,655.7