Question

Joe deposited $2500 into a savings account earning 4% compounded monthly. If he makes no other deposits or withdrawal, how much will he have in the account in three years?​

Answer 1

Answer:

2500=100

**. =4

2500×4/100=100

100×12 because 1 year have 12 months

then 3×1200=3600

Answer 2

$~~~~~~ \textit{Compound Interest Earned Amount}$

$A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 2500\\ r=rate\to 4\%\to \frac{4}{100}\dotfill &0.04\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &3 \end{cases} \\\\\\ A=2500\left(1+\frac{0.04}{12}\right)^{12\cdot 3}\implies A=2500\left( \frac{301}{300} \right)^{36}\implies A\approx 2818.18$