Question
Jill deposited $2,500 in a savings account at a rate of 7.75%,
compounded monthly. How much was in her account after three months?
compounded monthly. How much was in her account after three months?
Answers
Writeacher
Assistance needed.
DrBob222
You can do this one of two ways.
The long way is to make three problems.
2500 + (2500)x (0.0775/12) = ?? and that will be the amount at the end of the first month.
Then do the problem again for the second month and a third time for th third month.
A shorter way is use the formula for interest compounded.
Amount = 2500*[(0.0775/12)+1.00]<sup>3</sup> = ??
I obtained 2548.75 either way.
The long way is to make three problems.
2500 + (2500)x (0.0775/12) = ?? and that will be the amount at the end of the first month.
Then do the problem again for the second month and a third time for th third month.
A shorter way is use the formula for interest compounded.
Amount = 2500*[(0.0775/12)+1.00]<sup>3</sup> = ??
I obtained 2548.75 either way.