Question

Daniel has 120 dollars in the bank. He is earning 3.5% compound interest each month. How much money will he have in the bank in one year?

Answer 1

$124.27

Explanation:

A = Principal(1 + r/n)^nt

r = interest rate

n = # times compounded

t = # years

A = 120 (1 + .035/12)^12(1)

A = 120(1 + .0029)^12

A = 120(1.0029)^12

A = 120 x 1.0353

A = 124.27

Answer 2

$1813.28

Explanation: