Question

Barbara deposits $400 into an account earning 2.2% annual interest compounded monthly for 81 months. No other deposits or withdrawals are made.

What is the balance of Barbara's account after 81 months?

(1 point)
Barbara's account balance is $
.

Interest is paid 12 times a year for 8112
years.

Answer 1

Balance = 400(1 + 0.022/12)^{81} = 400(1.0018333333)^{81} ≈ $463.97.

(81 months = 81 compounding periods; 81 months = 6.75 years.)