Question

Bob wants to invest his $3000 in an account that gets 3.4% interest rate compounded monthly, how much money will he have after 12 years? (round to nearest whole number)

Answer 1

After 12 years Bob will have $ 4,508.80 in his account.

Explanation:

Given that Bob wants to invest his $ 3000 in an account that gets 3.4% interest rate compounded monthly, to determine how much money will he have after 12 years the following calculation must be performed:

3000 x (1 + 0.034 / 12) ^ 12x12 = X

3000 x (1 + 0.0028333) ^ 144 = X

3000 x 1.0028333 ^ 144 = X

3000 x 1.502932 = X

4,508.80 = X

Therefore, after 12 years Bob will have $ 4,508.80 in his account.