Question

An account is opened with an initial deposit of \$100 and earns 3.0\% interest compounded monthly What will the account be worth in 25 years ?

Answer 1

Explanation:

Principle times rate times time

Principle equals 100. Rate equals 3.0%.Time equals 25 years. Then divide by hundred

Answer 2

211.50

Explanation:

Use the compound interest formula and substitute the given values:

A= $100( 1+0.03/12)^12(25)

Simplify using the order of operations:

A=$100( 1.0025)^300= $100(2.115019558)= $211.50