Question

Emma puts $1000 in a savings account that pays 4% interest, compounded monthly. How much money will be in the account 3 years later if she makes no more deposits?
a. $1,127.27
b. $1,124.86
c. $1,120.00
d. $1,010.03

Answer 1

Answer:

Option A. $\ 1,127.27$  

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

$t=3\ years\\ P=\ 1,000\\ r=0.04\\n=12$  

substitute in the formula above  

$A=\ 1,000(1+\frac{0.04}{12})^{12*3}=\ 1,127.27$  

Answer 2

Answer:

a

Step-by-step explanation: