Question

Suppose Annabelle decides to not get a car after all. Instead, she plans to invest the $200 each month into a structured

savings account that earns 3.6% annual interest compounded monthly. How much money will she earn from interest
after 5 years?

Answer 1

She will earn $1,126.32 from interest.

Explanation:

I did it on edmentum and this was the right answer

Answer 2

The amount is $239.43

Explanation:

The amount she will earn after 5 years is given by

A= p(1+r/n)^(nt)

P = $200

r = 0.036

n = 12*5 = 60

t = 5

A= 200(1+0.036/60)^(300)

A= 200(1+0.0006)^(300)

A= 200(1.0006)^300

A= 200(1.19715)

A= 239.43

The amount is $239.43