Question

Question 2

Sarah opens a savings account that has a 2.75% annual interest rate, compounded monthly. She deposits $500 into the
account. How much will be in the account after 15 years?
$500.00
$754.94
$1255.27
$255.27

Answer 1

Therefore $754.94 will be in account after 15 years.

Explanation:

Given , Sarah opens a saving account that has a 2.75% annual interest rate , compounded monthly. She deposits $500 into the account.

P = $500, r = 2.75% = 0.0275 , t = 15 years and n= 12

`Amount (A) =P(1+(r)/(n))^(nt)`

`=\$500(1+(0.0275)/(12))^((12*15))`

=$754.94

Therefore $754.94 will be in account after 15 years.