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Laura deposits $2,000 in an account that has an annual interest rate of 1.96%,
compounded monthly. How much interest will she earn at the end of 1 month?
Round to the nearest cent. *

Respuesta :

Answer:

$3.23

Step-by-step explanation:

Given that,

Principal, P = $2,000

Rate of interest, r = 1.96%

Tie, n = 1 month = (1/12) years

The formula of compound interest is given by :

[tex]CI=P[(1+\dfrac{R}{100})^n-1]\\\\CI=2000\times [(1+\dfrac{1.96}{100})^{1/12}-1]\\\\CI=3.23[/tex]

So, the interest will she earn at the end of 1 month is $3.23

abidemiokin

The amount she earns at the end of 1 month is 200,326cents

The formula for calculating the compound amount is given as:

  • A  = P(1 + r/n)^nt

  • r is the rate
  • n is the compounding time
  • t is the time

A = 2000(1 + 0.0196/12)^(12*1/12)

A = 2000 (1+0.00163)^1

A = 2000(1.00163)

A = $2,003.26

Hence the amount she earns at the end of 1 month is 200,326cents

Learn more on compound interest here: https://brainly.com/question/24924853

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