Answer:
$4049.23
Step-by-step explanation:
Data provided in the question:
Principle amount = $3,000
Interest rate = 3% compounded monthly = 0.03
Time = 10 years
Now,
Number of compounding periods in a year = 52 [as 1 year have 52 weeks ]
Using the formula of compounding
Future value = Principle ×
![[1 + (r)/(n)]^(n* t)](https://img.qammunity.org/2021/formulas/business/high-school/u89rp33xbdosu5obo236bsw0dgy9qmcfmh.png)
Here,
r is the interest rate
n is the number of compounding periods
t is the time in years
Therefore,
Future value = $3,000 ×
![[1 + (0.03)/(52)]^(52* 10)](https://img.qammunity.org/2021/formulas/business/high-school/cnub5zqe8pyges0qtvdyea53tecunt617y.png)
or
Future value = $3,000 × 1.3497
or
Future value = $4049.23