Question

A savings account appreciates 1.5% each month. If the initial balance is $50,000, what would the total balance be after 36 months?

Answer 1

$52284

Explanation:

Given data

Rate= 1.5%

Principal= $50,000

Time = 36 months = 3 years

For the final amount A, let us apply the compound interest formula

A= P(1+r)^t

subtsitute

A=50000(1+0.015)^3

A=50000(1.015)^3

A=50000*1.045678375

A=52284

Hence the balance after 36 months (3 years) is $52284