Question

Joe deposited $2500 into a savings account earning 4% compounded monthly. If he makes no other deposits or withdrawal, how much will he have in the account in three years?​

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount}`

`A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$2500\\ r=rate\to 4\%\to (4)/(100)\dotfill &0.04\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &3 \end{cases} \\\\\\ A=2500\left(1+(0.04)/(12)\right)^(12\cdot 3)\implies A=2500\left( (301)/(300) \right)^(36)\implies A\approx 2818.18`

Answer 2

2500=100

**. =4

2500×4/100=100

100×12 because 1 year have 12 months

then 3×1200=3600