Question

$2,000 is invested for 14 years with an APR of 3% and monthly compounding the balance in the account after 14 years is what

Answer 1

The amount is $3042.33 and the interest is $1042.33.

STEP 1: To find amount we use formula:
A=P(1+rn)n⋅t
A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years
In this example we have
P=$2000 , r=3% , n=12 and t=14 years
After plugging the given information we have
AAAA=2000(1+0.0312)12⋅14=2000⋅1.0025168=2000⋅1.521164=3042.33
STEP 2: To find interest we use formula A=P+I, since A=3042.33 and P = 2000 we have:
A3042.33II