Answer:
$670
Step-by-step explanation:
Given that $300 is deposited monthly for 16 years at 5% per year
Applying the compound interest formula;
A=P(1+r/n)^nt
where
A= amount in account after time t
P=starting amount=$300
r=interest rate= 5%
n=number of compoundings per year= 12
t=time in years=16
[tex]A=P(1+\frac{r}{n} )^{nt} \\\\A=300(1+\frac{0.05}{12} )^{12*16} \\\\\\A=300(1+0.004167)^{192} \\\\\\A=300(1.004167)^{192} \\\\\\A=666.60\\\\\\A=670[/tex]
