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Find the balance in the account after the given period. $2,600 deposit earning 4.2% compounded monthly, after 3 years. The balance after 3 years will be $ (Round to the nearest cent as needed.)​

User Ipd
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1 Answer

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To find the balance of the account after 3 years, we can use the formula for compound interest:

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

Where A is the final amount, P is the initial principal, r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years.

In this case, the initial principal is $2,600, the interest rate is 4.2% (expressed as a decimal), the number of times the interest is compounded per year is 12 (monthly), and the number of years is 3.

So, we can plug these values into the formula:

A = 2600(1 + 0.042/12)^(12*3)

A = 2600(1.0035)^36

A = 2600 * 3.876

A = 10,049.6

The balance of the account after 3 years is $10,049.6.

User Andrew Halil
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