Question

Monique Fournier deposited $12,500 into a savings account paying 6.5% annual interest compounded monthly. What amount will she have in her account after 3 years? How much compound interest will she have earned?

Answer 1

6.5%=.065
.065/12=0.00541666666666666666666666666667/month
3 years = 36 months
(1+0.00541666666666666666666666666667)^36=1.2146716269797335689295444127607
1.2146716269797335689295444127607 x 12500=$15183.40 in the account after 3 years
15183.40-12500=$2683.40 in interest earned
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