Question

You deposit $10 per month in a bank that offers an annual interest rate of 6%. At the end of three years, your balance is404.95 $517.21 $676.45 $393.94

Answer 1

We can compute for the total savings after three years and the solution is shown below:
i = 6%/12 months = 0.5 %
n = 3 years * 12 months = 36
F = P (1+i)^n
F = $10*36 (1+0.005)^36
F = $431

The answer is the letter "A" which is approximately equivalent to $404.95.