Question

Jennifer places $500 into a savings account that is paying 1.5% annual interest. The interest is compounded monthly. How much money will be in the account in 3 years?

Answer 1

Answer:

$522.99

Step-by-step explanation:

$FV = P (1 + \frac{r}{n} )^n^t$

Fv = total amount plus interest over the given period of time

P = Principal amount deposited i.e $500

r = interest given 1.5% i.e 0.015

n = period of time the principal remains deposited. In this case annually i.e 12 months

$FV = 500 ( 1 + \frac{0.015}{12} ) ^1^2^X^3$

$FV = 500 ( 1.04599)$

FV = $522.99