Question

$3000 is invested for a period of 3 years at a rate of 6% compound monthly. What will the balance in the account be at the end of 3 years?

Answer 1

Hence, the total amount of money that the investor would have after 6 years will be $ 536.04 .

Step-by-step explanation

Answer 2

Interest = $3573.048

Explanation:

Given: $3000 is invested for a period of 3 years at a rate of 6% compound monthly. What will the balance in the account be at the end of 3 years?

The formula to compound interest is:

I = P(1 + R)^T

First, put in the terms:

I = $3000(1 + 6%)^3

Then calculate:

I = $3000(1 +
`(6)/(100)`)^3

I = $3000(1 + 0.06)^3

I = $3000(1.06)^3, 1.06^3 = 1.191016

I = $3000 x 1.191016

I = $3573.048