Tom deposited $2410 in a bank that pays 12% interest, compounded monthly. Find the amount he will have at the end of 3 years
Mathematics · High School · Mon Jan 18 2021
Answered on
Given:
Principal Amount ( P ) = $2410
Interes Rate ( r ) = 12% or 0.12 ( divide by 100)
Term ( t ) = 3
Compounded monthly ( n ) = 12
Formula for Compound Interest:
A = P ( 1 + r/n)^nt
A = Future value
Solution:
Substitute the given values of P, r, n and t to the formula for the compound interest.
A = $2410 ( 1 + 0.12/12)^(3)(12)
A = $2410 ( 1.01 )^36
A = $2410 (1.430768784)
A = $3449.15
Final answer:
A = $3449.15