A bank features a savings account that has an annual percentage rate of 4.4 % with interest compounded monthly. Seni deposits $11,500 into the account.

How much money will Seni have in the account in 1 year?
Answer = $ 
. Round answer to the nearest penny.

What is the annual percentage yield (APY) for the savings account?
 
%. Round to the nearest hundredth of a percent.

### Step 1: Calculating the Future Value after 1 Year

To calculate the amount of money Seni will have in the account after 1 year with monthly compounding, we can use the compound interest formula:

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

Where:
- $ A $ is the amount of money after time $ t $,
- $ P $ is the principal amount ($11,500),
- $ r $ is the annual interest rate (4.4% or 0.044),
- $ n $ is the number of times the interest is compounded per year (12 for monthly),
- $ t $ is the number of years (1 year).

Substitute the values into the formula:

\[
A = 11,500 \left(1 + \frac{0.044}{12}\right)^{12 \times 1}
\]

### Step 2: Calculating the Annual Percentage Yield (APY)

The APY is given by the formula:

\[
APY = \left(1 + \frac{r}{n}\right)^n - 1
\]

Where:
- $ r $ is the annual interest rate (0.044),
- $ n $ is the number of times interest is compounded per year (12).

Let's calculate both values.### Results:
1. Seni will have **$12,016.33** in the account after 1 year.
2. The Annual Percentage Yield (APY) for the savings account is **4.49%**.

Let me know if you'd like more details, or if you have any further questions!

Here are some related questions to consider:
1. What if Seni deposits an additional $2,000 after 6 months?
2. How does the balance change with different compounding frequencies, such as quarterly or daily?
3. How would a 5-year investment with the same conditions affect the total amount?
4. What happens if the interest rate is changed to 5%?
5. How would the result differ if the account had simple interest instead of compound interest?

**Tip:** When comparing different savings accounts, always check the APY, as it accounts for compounding and gives a more accurate idea of the interest you'll earn.

A bank features a savings account that has an annual percentage rate of 4.4% with interest compounded monthly. Seni deposits $11,500 into the account. How much money will Seni have in the account in 1 year? What is the annual percentage yield (APY) for the savings account?

Learn how to calculate the future value of a savings account with a 4.4% annual percentage rate (APR) compounded monthly. With a $11,500 deposit, find out how much money will be in the account after 1 year, and calculate the annual percentage yield (APY). Perfect for students in Grades 9-12.

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