Answer:
Siobhan deposits $1200 into a savings account that pays 5.2% annual interest compounded monthly. The amount will be $269.75.How to calculate compound interest's amount?If the initial amount (also called as principal amount) is P, and the interest rate is R% per unit time, and it is left for T unit of time for that compound interest, then the interest amount earned is given by:The final amount becomes:A = P(1 + r/n)nt for compound interestA = final amountp = principal investedr = interest rate as a decimalt = # years investedIn this case A = 1200 ( 1.22)A = 1469.75The total was interest you must subtract out the principal amount invested.I = 1469.75 - 1200 I = $269.75
Step-by-step explanation:
