CH7 Q10

Michelle is attending college and has a part-time job. Once she finishes college, Michelle would like to relocate to a metropolitan area. She wants to build her savings so that she will have a "nest egg" to start her off. Michelle works out her budget and decides that she can afford to set aside $50 per month for savings. Her bank will pay her 3 percent interest compounded monthly on her savings account.

What will Michelle's balance be in five years?

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(Use the time value of money formulas or the TI BA II Plus financial calculator, and round your answer to the nearest cent.)