Question

Encouraged by his investment, Joseph decides to open another CD account. This time, he deposits $1,000 and plans to leave it

untouched for 3 years. In exchange, the bank will pay him 0.3% interest every month. How much will be in the account when the 3
years have passed?

Answer 1

Joseph will have 1,108$ in his bank account when he opens it again.

First, we need to know how much 0.3% of 1000$ is, which is 3$.

Next, since there are 12 months in a year we multiply 3$ by 12 which is 36.

Then, since 3 years have passed we multiply 36$ by 3 which is 108$. So in conclusion, he'll have 1,108$ when he checks his account again.

Answer 2

$1,113.87

Explanation:

The initial value is 1,000, the rate of increase is 1.003, and the number of times it will increase is 36. y=1000 ( 1.003 ) 36 =1,113.87y equals 1000 left parenthesis 1.003 right parenthesis superscript 36 baseline equals 1113.87.