Question

Brad invests $3700 in an account paying 3% compounded monthly. How much is in the account after 8 months?

Answer 1

Amount after 8 month (A) = $3775 (Approx)

Explanation:

Given:

Amount invested (P) = $3,700

Rate of interest (r) = 3% = 0.03 / 12 = 0.0025 monthly

Number of month (n) = 8 month

Find:

Amount after 8 month (A)

Computation:

`A=P(1+r)^n\\\\ A=3700(1+0.0025)^8\\\\A=3700(1.02017588)\\\\ A = 3774.650676`

Amount after 8 month (A) = $3775 (Approx)