Micah invests $5,280 in an account that earns 4.2% interest, compounded monthly.

Hence By End of the year with monthly compounded interest it will have 5522.56 $

Step-by-step explanation:

Given:

Initial investment =5.280 $

Rate of interest =4.2%

To Find:

Amount after the 1 year

Solution:

As the investment follows the rule for compound interest as ,

A=P(1+R)^t

Here A=amount after t years

R= rate of interest , P= principal amount   t is time period

So given is monthly compounded interest

so t will divided into 12 parts as there 12 months in one year.

P=5280 $ , R=4.2/12 %  , t=12

^12

A=5522.56 $

$7384.18

Step-by-step explanation:

5,280 (1 + .042 / 12)^ 12(8)

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