If Ashley deposits $15,000.00 into a savings account that earns 2.4% interest per year compounded monthly, how much money can she expect to be in the account in 6 years? Round your answer to two decimal places.
A) $17,320.77
B) $17,160.00
C) $12,986.44
D) $2,320.77

Question

Quizplus · Accepted Answer

The future value of a compound interest account can be calculated using the formula $A = P(1 + \frac{r}{n})^{nt}$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (decimal), $n$ is the number of times that interest is compounded per year, and $t$ is the time the money is invested for in years. Plugging in the values: $A = 15000(1 + \frac{0.024}{12})^{12*6}$, calculating this gives approximately $17,320.77.

If Ashley Deposits $15,000