A bank features a savings account that has an annual percentage rate of 5.5 % with interest compounded monthly. Enzo deposits $9,500 into the account.

How much money will Enzo have in the account in 1 year?

To determine how much money Enzo will have in the account after 1 year with interest compounded monthly, we can use the compound interest formula:

\[
A = P \left( 1 + \frac{r}{n} \right)^{nt}
\]

Where:
- $ A $ is the amount of money in the account after $ t $ years,
- $ P $ is the principal amount (the initial deposit),
- $ r $ is the annual interest rate (as a decimal),
- $ n $ is the number of times the interest is compounded per year,
- $ t $ is the number of years.

### Given values:
- $ P = 9,500 $ (Enzo's deposit),
- $ r = 5.5\% = 0.055 $,
- $ n = 12 $ (compounded monthly),
- $ t = 1 $ year.

Now, plug the values into the formula:

\[
A = 9,500 \left( 1 + \frac{0.055}{12} \right)^{12 \times 1}
\]

First, calculate the values inside the parentheses:

\[
A = 9,500 \left( 1 + \frac{0.055}{12} \right)^{12}
\]

\[
A = 9,500 \left( 1 + 0.0045833 \right)^{12}
\]

\[
A = 9,500 \left( 1.0045833 \right)^{12}
\]

Now calculate the exponentiation:

\[
A = 9,500 \times 1.056848
\]

Finally, calculate the product:

\[
A \approx 9,500 \times 1.056848 = 10,040.06
\]

### Conclusion:
After 1 year, Enzo will have approximately **$10,040.06** in his account.

Would you like further details on any part of this calculation or more examples?

Here are five related questions for further exploration:
1. What if the interest were compounded daily instead of monthly?
2. How much interest would Enzo earn if the account had an APR of 4% instead?
3. How would the total amount change if Enzo deposits for 5 years instead of 1 year?
4. What would be the balance if Enzo withdrew some money before the interest was compounded?
5. What is the difference between simple interest and compound interest over 1 year?

**Tip**: Compounding more frequently (e.g., monthly or daily) results in more interest earned compared to compounding annually at the same APR.

A bank features a savings account that has an annual percentage rate of 5.5% with interest compounded monthly. Enzo deposits $9,500 into the account. How much money will Enzo have in the account in 1 year?

Discover how to calculate compound interest for a $9,500 deposit at an APR of 5.5% compounded monthly. Learn the steps to solve using the compound interest formula and find out how much Enzo will have after 1 year. This detailed solution is suitable for Grades 9-10 students.

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