10. You deposit $520 in an account with 4% interest
compounded monthly. What is the balance in the
account after 5 years?
4%/year = (1/3)% /month
every month multiply by 1.003333333333333333333333333......
for 5*12 = 60 months
so
520 * (1.003333333333333333333333333......)^60
Thank you SOOOO MUCH Damon
thank you Damon this helped a lot
To find the balance in the account after 5 years with compound interest, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final balance in the account
P = the initial principal amount (in this case, $520)
r = the annual interest rate (in decimal form, 4% = 0.04)
n = the number of times interest is compounded per year (monthly compounding, so n = 12)
t = the number of years (5 years)
Now we can substitute the values into the formula and calculate the balance:
A = 520(1 + 0.04/12)^(12*5)
To simplify the calculation, let's break it down step by step:
1. Calculate (1 + 0.04/12):
(1 + 0.04/12) = 1.00333333333 (rounded to 11 decimal places)
2. Calculate (12 * 5):
12 * 5 = 60
3. Substitute the values into the formula:
A = 520 * (1.00333333333)^60
4. Calculate the final balance using a calculator:
A ≈ 566.40
Therefore, the balance in the account after 5 years will be approximately $566.40.