Question

You put $1000 in a savings account which earns compound interest at a rate of 0.1% per month. If you don't make any deposits or withdrawls, how much will you have in your account in 3 years (36 months)? Round your answer to the nearest whole cent.

Answer 1

Amount in compound interest = p(1 + r)^n where p is the initial deposit, r = rate and n = period.
Here, Amount after 36 months = 1000(1 + 0.1/100)^36 = 1000(1 + 0.001)^36 = 1000(1.001)^36 = 1000(1.036637) = $1,036.64