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Joseph Renfer deposited $2,400 in a new savings account on March 1. The savings account earns 6% interest compounded monthly.

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Answer:

At the end of 1 years, your savings will have grown to $4,944.

You will have earned in $144 in interest.

Answer:

After one year, Joseph would have $2548.03.

Step-by-step explanation:

Givens:

  • Principal is $2,400.
  • Rate of interest is 6%.
  • The amount is compounded monthly.

To solve this problem we have to use the interest compound formula:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

Where A is the final amount, P is the principal, r is the rate of interest in decimal number, n is the amount of periods compounded per year and t is the time in years.

Now, to know how much would have Joseph after one year, we have:

[tex]A=2400(1+\frac{0.06}{12})^{12(1)} \\A=2400(1.06)=2548.03[/tex]

Therefore, after one year, Joseph would have $2548.03.

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