213k views
5 votes
my mom put $500 in a savings account that earned 2.5% interest each month. how much money was in the account after 3 months?

1 Answer

4 votes

Final answer:

To find out how much money is in the account after 3 months, we can use the formula for compound interest.

Step-by-step explanation:

To find out how much money is in the account after 3 months, we can use the formula for compound interest. The formula is: A = P(1 + r/n)^(n*t), where A is the final amount, P is the principal (initial amount), r is the annual interest rate (in decimal form), n is the number of times interest is compounded per year, and t is the number of years. In this case, the principal is $500, the interest rate is 2.5% (or 0.025), the number of times interest is compounded per month is 1, and the number of years is 3 months divided by 12. Plugging these values into the formula, we get: A = 500(1 + 0.025/1)^(1*(3/12)). Evaluating this expression, we find that the amount in the account after 3 months is approximately $505.22.

User Sinthia
by
7.9k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories