Jessica just received a $5,000 inheritance from her father. She invests the money in her bank's money market account which earns 4.5% stated annual interest (APR) compounded monthly.

1. After 1 year, what will be the total value in Jessica's money market account? 

2. Six months after investing her inheritance, Jessica's van breaks down and needs $2500 in repairs. She decides to withdraw the money from her inheritance account to pay for the repairs. How much money will she have at the end of the year? 

Answer rating: 100% (QA)

1 The stated annual interest rate is 45 compounded monthly Therefore the monthly interest r... View the full answer