yay

Question

yay

anonymous · Answer

the faster the account grows?

anonymous · Answer

@Johnbc

anonymous · Answer

When an account earns compounded interest it means that it gets a percentage of the money in the account every time that it is time to add interest so if we have 1.00 and we get 50% compounded monthly then the first month 50% of 1.00 is 50 cents but the next month you now have 1.50 so 50% of that would be .75 cents and so you can see if you have more money in the account then what would happen?

anonymous · Answer

the account would continuously grow on a monthly basis?

anonymous · Answer

Yes it would so what would happen if you have more money in the account?

anonymous · Answer

@Johnbc  I believe it's C. ?

anonymous · Answer

Correct! Great job

anonymous · Answer

Thanks. Can you check my next problem, please.
Wendy opened a savings account 15 years ago with a deposit of $2,340.73. The account has an interest rate of 4.7% compounded monthly. How much interest has Wendy earned?

A. $2,321.05

 B. $2,390.03

 C. $2,450.74

D.  $4,730.76- I think it's this one.

anonymous · Answer

Compounded Interest Formula:
$$A = P(1+\frac{ r }{ n })^{nt}$$

P = principal amount (the initial amount you borrow or deposit)
A = amount of money accumulated after n years, including interest.
r  = annual rate of interest (as a decimal)
n  =  number of times the interest is compounded per year
t  = number of years the amount is deposited or borrowed for.

anonymous · Answer

The answer D is actually how much money was made after 15 years all together with the interest so to find only the interest made you will need to subtract the initial amount from that number