Question

sadie opened a savings account and deposited 300.00 as a principal. the account earns 8% interest compounded monthly what is the balance after 9 years

Answer 1

The balance after 9 years can be computed below

$\begin{gathered} A=p(1+\frac{r}{n})^{nt} \\ P=300 \\ \text{rate}=\text{ 8\%=0.08} \\ n=9\times12=108 \\ t=9\text{ years} \\ A=300(1+\frac{0.08}{12})^{108} \\ A=300(1.00666666667)^{108} \\ A=300\times2.04953023579 \\ A=614.859070736 \\ A=614.86 \end{gathered}$