Answer:
To calculate the amount of money in Hong's account after 3 years, we can use the formula for compound interest:
A = P * (1 + r/n)^(n*t)
Where:
A is the final amount (money in the account after 3 years)
P is the principal amount (initial investment or bonus) ($1900)
r is the annual interest rate (1.35% or 0.0135)
n is the number of times interest is compounded per year (12, since it is compounded monthly)
t is the number of years (3)
(a) Calculating the amount of money in Hong's account after 3 years:
A = 1900 * (1 + 0.0135/12)^(12*3)
A ≈ $1965.14
Therefore, Hong will have approximately $1965.14 in his account after 3 years.
(b) To calculate the interest earned on Hong's investment after 3 years, we can subtract the initial investment from the final amount:
Interest = A - P
Interest = $1965.14 - $1900
Interest ≈ $65.14
Therefore, Hong will earn approximately $65.14 in interest on his investment after 3 years.