Final answer:
To find out how much money was being deposited into the account every month, we need to use the formula for compound interest. Substituting the given values into the formula, we find that the amount being deposited every month is approximately $37.93.
Step-by-step explanation:
To find out how much money was being deposited into the account every month, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final balance after t years
P is the initial principal (amount deposited)
r is the annual interest rate (written as a decimal)
n is the number of times interest is compounded per year
t is the time in years
In this case, we have:
A = $1750.45
P = $250
r = 12% or 0.12
n = 12 (compounded monthly)
t = 3 years
Substituting these values into the formula, we get:
$1750.45 = $250(1 + 0.12/12)^(12*3)
Simplifying further, we find:
$1750.45 = $250(1.01)^36
Dividing both sides by $250, we have:
7.0018 = (1.01)^36
Now we can solve for (1.01)^36:
(1.01)^36 ≈ 1.44033
Multiplying both sides by $250, we obtain:
7.0018 * $250 ≈ $1750.45
Therefore, the amount being deposited every month is approximately $37.93. Therefore, the answer is C. $37.93.