Question

Christine has $875.83 in her savings account.
The account pays 9% compounded monthly.
Christine does not make any deposits or withdrawals over the next 6 months.
How much interest does the account earn?

Answer 1

Question #23197

Christine has $875.83 in her savings account. The account pays 9% compounded monthly. Christine does not make any deposits or withdrawals over the next 6 months. How much interest does the account earn?

Solution:

$$S = K\left(1 + \frac{p}{100} * \frac{n}{12}\right)^N$$

- n-period compounded the interest

- $S = 875.83\left(1 + \frac{9}{12 * 100}\right)^6 = 915.88$

- $915.88 - 875.83 = 40.05$

- Answer: 40.05 $