Therefore $754.94 will be in account after 15 years.
Step-by-step explanation:
Given , Sarah opens a saving account that has a 2.75% annual interest rate , compounded monthly. She deposits $500 into the account.
P = $500, r = 2.75% = 0.0275 , t = 15 years and n= 12
[tex]Amount (A) =P(1+\frac{r}{n})^{nt}[/tex]
[tex]=\$500(1+\frac{0.0275}{12})^{(12\times15)}[/tex]
=$754.94
Therefore $754.94 will be in account after 15 years.
