Question

You invest $300 in an account that has an interest rate of 1.3%, compounded monthly. How much money is in the account after 20 years? Round your answer to the nearest whole number.

Answer 1

The formula is
A=p (1+r/k)^kt
A future value?
P present value 300
R interest rate 0.013
k compounded monthly 12
T time 20 years
A=300×(1+0.013÷12)^(12×20)
A=389.02

Answer 2

Answer:

$389

Step-by-step explanation:

The formula for final value of compound interest is given by

$A=P(1+\frac{r}{n})^{nt}$

Here, we have

P = $300

r = 0.013

t = 20 years

n = 12

Substituting these values and find A

$A=300(1+\frac{0.013}{12})^{12\cdot20}\\\\A\approx389$

Therefore, in 20 years, the account will have $389.