Final answer:
To calculate the amount in Lynn's account at the end of 3 years with compound interest, use the formula A = P(1 + r/n)^(nt) where A is the final amount, P is the initial principal, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years. Plugging in the values from the question, Lynn's account will be worth $5718.41 at the end of 3 years.
Step-by-step explanation:
To calculate the amount in Lynn's account at the end of 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 (the amount deposited)
- r is the annual interest rate (expressed as a decimal)
- n is the number of times the interest is compounded per year
- t is the number of years
Plugging in the values from the question:
- P = $5000
- r = 8% = 0.08
- n = 12 (compounded monthly)
- t = 3 years
Using these values, we can calculate:
A = 5000(1 + 0.08/12)^(12*3) = $5718.41
Therefore, Lynn's account will be worth $5718.41 at the end of 3 years.