Question

6.) $75 is deposited monthly into an account that pays 1.8% interestcompounded monthly. What is the amount in the account after 3 years?

Answer 1

$142.55

Step-by-step explanation

From the question, the following were given:

Principal, P = $75

Rate, R = 1.8% = 1.8/100 = 0.018/12 = 0.0015

Time, nt = 3 years x 12 months = 36 months

The amount, A in the account after 3 years can be calculated as follow

`\begin{gathered} \text{A }=P(1+R)^(nt) \\ A=75(1+0.018)^(36) \\ A=75(1.018)^(36) \\ A=75*1.900728156 \\ A=142.55 \end{gathered}`

Therefore, the amount in the account after 3 years is $142.55