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?
2 answers
Assistance needed.
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]3 = ??
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]3 = ??
I obtained 2548.75 either way.
1 answer