Question

Precalculus

Answer 1

Answer:

$24.35

Step-by-step explanation:

We will use the compound interest formula provided to solve this problem:

$A=P(1+\frac{r}{n} )^{nt}$

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, change 1% into a decimal:

1% -> $\frac{1}{100}$ -> 0.01

Since the interest is compounded monthly, we will use 12 for n. Lets plug in the values now:

$A=800(1+\frac{0.01}{12})^{12(3)}$

$A=824.35$

Lastly, subtract A from the principal to get the interest earned:

$824.35 - 800 = 24.35$