As soon as Jessica got her first job she invested 400 per mo

As soon as Jessica got her first job, she invested $400 per month into a savings account that earned 1% per month. What is her current balance is she has invested for 10 years?

Solution

The answer is as follows;

The compounded interest formula:
A = P(1 + r/n)^nt
Where,
A = final amount
P = principal or initial amount
r = annual nominal interest rate (as a decimal, not in percentage)
n = number of times the interest is compounded per year
t = number of years

Here, r = 0.01, n = 12, and t = 10 year(s) and P = $400*12=$4800

$4800(1+.01)^(12)(10)

=$4800(1+.01)^(120)

=$4800*3.300387

=$15841