Tessa invests $5400 in a new savings account which earns 5.2% annual interest, compounded monthly. what will be the value of her investment after 8 years? round to the nearest cent.

Based on the interest rate, amount invested, and the period compounded, the amount after 8 years would be $8,178.43.

First convert the rate and number of periods to a monthly basis as this is the period of compounding.

Rate = 5.2% / 12 = 5.2/12%

Period = 8 x 12 = 96 months

The amount will be:

= Amount x ( 1 + rate) ^ number of periods

Solving would give:

= 5,400 x ( 1 + 5.2/12%)⁹⁶

= $8,178.43

In conclusion, the account would have $8,178.43.

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7. d. 64

8. i. 32

9. c. 125

10. j. none of the above

11. d. 81

12. i. 216

13. e. none of the above

14. g. 240

15. e. none of the above

16. g. 32

17.   e. none of the above

75

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