Question

Carl deposited $1220 in a bank that pays 9% interest, compounded monthly. Find the amount he will have at the end of 3 years.

a. $3431.45
b. $1596.55
c. $1549.40
d. $1334.44

Answer 1

A=p (1+I/k)^kn
A=1,220×(1+0.09÷12)^(12×3)
A=1,596.55

Answer 2

Explanation:

Alright, lets get started.

Principal amount is given as
`P=1220`

Time is given as
`t = 3`

compounded monthly means
`n = 12`

rate of interest
`r = 9`

The formula for final amount is:

`A = P(1+(r)/(n))^(nt)`

`A = 1220 (1+(9)/(100*12)) ^(12*3)`

`A = 1220*1.3086`

`A = 1596.55`

Hence the answer is $ 1596.55 : Answer

Hope it will help :)