Question

you plan to deposit $78,300 into a savings account that has a 5.79% interest rate compounded monthly. what will be the balance of your savings account after 8 years?
use this formula:
$a = p(1 + \frac{r}{n})^{nt}$
enter the dollar amount rounded to the nearest cent.
your answer:

Explanation:

Step1: Identify given values

$P = 78300$, $r = 0.0579$, $n = 12$, $t = 8$

Step2: Calculate periodic rate

$\frac{r}{n} = \frac{0.0579}{12} = 0.004825$

Step3: Calculate total periods

$nt = 12 \times 8 = 96$

Step4: Compute growth factor

$(1 + 0.004825)^{96} \approx 1.5927$

Step5: Find final balance

$A = 78300 \times 1.5927$

Answer:

$124708.41$