Question

Calculate the compound amount. Use the compound amount formula and a calculator. (Round your answer to two decimal places.)

P = $5700, r = 3% compounded monthly, t = 3 years

Answer 1

$6236.56

Explanation:

Compound Formula

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

I plugged in the numbers of P, r, and t.

n means the number of times the interest is applied per period. It is compounded monthly, and the time is given 3 years.

This means 12 months x 3 years = 36 months.

`A = $5700(1+.03/36)^3^6^(^3^)`

`A=6236.559672`

`A=6236.56`