Question

Mary invested 5,000 into a bank account that was earning 2.5 percent interest compound monthly what would her exact account balance be after 3 years?

Answer 1

$12,162.68

Explanation:

It's compounded monthly. 3 years is 36 months.

A = P (1 + r)^n

A = 5000 (1 + 0.025)^36

A ≈ 12162.68

Rounded to the nearest cent, her exact account balance would be $12,162.68.