Question

Rob deposits $1,000 in a savings account at New York State Bank that pays 1.4% interest, compounded monthly. How much is in his account at the end of one year? Type your answer.

Answer 1

To calculate the amount of money in Rob's savings account at the end of one year, we can use the formula for compound interest.

Step-by-step explanation:

To calculate the amount of money in Rob's savings account at the end of one year, we can use the formula for compound interest: A = P(1+r/n)^(nt), where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.

Substituting the given values into the formula, we have A = 1000(1+0.014/12)^(12*1). Calculating this expression, we find that there is approximately $1014.68 in Rob's account at the end of one year.