YOU DEPOSIT $520.00 IN AN ACCOUNT WITH 4% INTEREST COMPOUNDED MONTHLY WHAT IS THE BALANCE IN THE ACCOUNT AFTER 5 YEARS
520 X 1 + 0.04/12^60 IS THIS RIGHT WAY TO DO THIS
520 X [1 + (0.04/12)]^60 IS THIS RIGHT WAY TO DO THIS
just clarifying
To calculate the balance in the account after 5 years with an initial deposit of $520.00 and a 4% interest compounded monthly, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final balance in the account
P = the principal amount (initial deposit)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years
In this case, you have:
P = $520.00
r = 4% = 0.04 (as a decimal)
n = 12 (compounded monthly)
t = 5 years
Now let's plug these values into the formula:
A = 520(1 + 0.04/12)^(12*5)
A = 520(1 + 0.003333)^60
A = 520(1.003333)^60
To calculate this, we can use a calculator or a spreadsheet. The answer is approximately $621.91.
So, the balance in the account after 5 years would be around $621.91 if $520.00 is deposited with a 4% interest compounded monthly.