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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step-by-step explanation:

left be aligning the decimal points is required to not required see the number of digits to the right