175k views
5 votes
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

2 Answers

6 votes

Answer:

a

Explanation:

User Jorie
by
7.7k points
4 votes

Answer:

Option A.
\$1,127.27

Explanation:

we know that

The compound interest formula is equal to


A=P(1+(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+(0.04)/(12))^(12*3)=\$1,127.27

User Leenephi
by
8.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories