Question

you deposit 1000 in savings account that earns .5% each month assuming you do not deposit or withdraw any money from the account, how much will you have in the account after 3 years

Answer 1

$1015.11

Explanation:

Compounded interest rate formula: A = P(1 + r/n)^t

Step 1: Plug in known variables

A = 1000(1 + 0.005/12)^36

Step 2: Multiply it all together

1000(1.00042)^36

1000(1.01511)

1015.11

This is a pretty bad bank considering only giving you .5% interest per month.