Answer: you would have $3260 to go on your vacation at the end of 3 years of high school
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = $2,875
r = 4.2% = 4.2/100 = 0.042
n = 12 because it was compounded 12 times in a year.
t = 3 years
Therefore,.
A = 2875(1 + 0.042/12)^12 × 3
A = 2875(1 + 0.042/12)^12 × 3
A = 2875(1 + 0.0035)^36
A = 2875(1.0035)^36
A = $3260
