Question

Fred wants to invest the $1000 he received for his birthday. He finds an investment opportunity that will earn him 10% compounded monthly. How much money will Fred have after 3 years?

A
$1,002.46

B
$3,597.54

C
$1,348.18

D
$1,919.03

Answer 1

Fred will have "C " $1,348.18 after 3 years

Explanation:

where,

Principal (P) = $1,000

rate = 10% = 0.10

Time (t) = 3 years

m = 12

Finding the accumulated amount

A =
`P*(1+(r)/(m) )^(mt)`

A =
`1000*(1+(0.10)/(12) )^(12*3)`

A = 1000 (1.0083)³⁶

A = $1346.578