Nancy has $4,111 in an account that pays 3.07% interest compounded monthly. What is her ending balance after two years?
Accepted Solution
A:
Answer:The ending amount in Nancy account after two years at 3.07% interest compounded monthly is $ 4364.64 Step-by-step explanation:Given as :The principal amount in Nancy account = $4,111 The rate of interest compounded monthly = 3.07 %The time period = 2 yearsLet The amount in her account after 2 years = $ Aso, From compounded methodAmount = Principal × [tex](1+\frac{Rate}{12\times 100})^{12\times Time}[/tex]Or, Amount = $4,111 × [tex](1+\frac{3.07}{12\times 100})^{12\times 2}[/tex]Or, A = $4,111 × [tex](1+\frac{3.07}{1200})^{24}[/tex]Or, A= $4,111 × [tex](1.0025)^{24}[/tex]∴ A = $4,111 × 1.0617I.e A = $ 4364.64Hence The ending amount in Nancy account after two years at 3.07% interest compounded monthly is $ 4364.64 Answer