SOLUTION: IF you put 4,000 in a bank account earning 2.5%interest compounded mothly( twelve times a year), how much money will be in the account after 3 years? round answer to nearest penny.

Question 121440This question is from textbook intro & intermediate algebra
: IF you put 4,000 in a bank account earning 2.5%interest compounded mothly( twelve times a year), how much money will be in the account after 3 years? round answer to nearest penny. This question is from textbook intro & intermediate algebra

Found 2 solutions by stanbon, checkley71:
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
IF you put 4,000 in a bank account earning 2.5%interest compounded mothly( twelve times a year), how much money will be in the account after 3 years? round answer to nearest penny.
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A(t)=P(1+r/n)^(nt)
A(3)=4000(1+0.025/12)^(36)
A(3)=4000(1.0778)
A(3)=$4311.20
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Cheers,
Stan H.

Answer by checkley71(8403) (Show Source): You can put this solution on YOUR website!
a=p(1+r/n)^tn a=amount, p=principal invested, r=rate, n=number of periods per year, t=number of years.
a=4000(1+.025/12)^3*12
a=4000(1.00208)^36
a=4000*1.0778
a=$4,311.20 answer.
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