Question

Farley invests $9,900 into an account with a 1.8% interest rate that is compounded monthly. How much money will be in this account after 3 years? Round your answer to the nearest cent. Do NOT round until you have calculated the final answer.

Answer 1

$10,448.87

Explanation:

A=P(1+(r/n))^(nt) - Formula for compound interest

A = final amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period (12, bc monthly)

t = number of time periods elapsed (years)

A = 9900(1+(.018/12))^(12*3)
A = 10448.8747961

A (rounded to the nearest cent) = $10,448.87
(depending on your homework site, it may be $10,448.88)