Question

Ankit deposits $800 in an account that earns 6% yearly interest compounded monthly. How much will the account be worth

after 2 years, assuming that Ankit does not withdraw any money from the account?
Round your answer to the nearest cent.
Do NOT round until you calculate the final answer.
(Do NOT include the dollar sign, $. in the answer box below.)

Answer 1

901.73

Explanation:

Answer 2

the compounded monthly formula is

total = principal * ( 1 + (rate / 12)) ^ 12*2 years

total = $800.00 * (1 + .06 / 12) ^ 24

total = $800.00 * (1.005) ^ 24

total = $800.00 * 1.1271597762

total = $901.7278209643

total = 901.73 (rounded)

Explanation: