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$13,500 deposit earning 3.3% compounded monthly, after 1 yr

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Final answer:

The question asks to calculate the future value of a deposit with compound interest after 1 year. Using the compound interest formula, we can find the amount by plugging in the principal amount of $13,500, an annual interest rate of 3.3%, compounded monthly for one year.

Step-by-step explanation:

The question involves calculating the future value of a monetary deposit with compound interest. Specifically, it asks how much a $13,500 deposit, earning an annual interest rate of 3.3% compounded monthly, will grow to after one year. To solve this problem, we use the compound interest formula:

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

Where FV is the future value, P is the principal amount ($13,500), r is the annual interest rate (3.3% or 0.033), n is the number of times the interest is compounded per year (12 for monthly), and t is the time the money is invested in years (1 year).

Plugging the values into the formula gives us:

FV = 13500 (1 + 0.033/12)^(12*1)

This calculation will give us the amount of money the student will have in their bank account after the specified time frame.

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