Question

An investment of $7000 is made in an account with a 4% interest rate that is compounded monthly. How much interest will the account have earned in 3 years? Round to two decimal places.

Answer 1

$10,080

Explanation:

4% of $7000 = $280

$280x 12 months= $3360 year

$3360 times 3 years = $10,080