Question

In order to purchase a new backyard patio in 3 years, the Robinsons have decided to deposit $1,700 in an account that earns 6% per year compounded monthly for 3 years. How much money will be in the account in 3 years?

Answer 1

Answer: A = 2,034.356 ≈ $2,034.36

$2,034.36 will be in the account in 3 years

Explanation:

Given that ;

P = $1,700

Rate r = 6%

Time period (t) = 3 years

now to find how much money will be in the account in 3 years

we say;

A = P ( 1 + r/n )^nt

A = 1,700 ( 1 + 0.06/12) ¹²ˣ³

A = 1,700 ( 1.19668)

A = 2,034.356 ≈ $2,034.36