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You deposit $3042 in an account earning 3% interest compounded monthly.
How much will you have in the account in 13 years? Give your answer accurate to 2 decimal places.
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Use the formula for the future value of a compounded account
F = p * (1 + r) ^ n,
where
p is the principal amount
r is the interest rate per time period
n is the number of time periods.
In your problem:
p = 3042
r = 0.03/12
n = 13*12 = 156
So, F = = 4490.79 (rounded).
ANSWER. In 13 years, it becomes $4490.79.
Solved.
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To see many other similar (and different) solved problems on compounded interest accounts, look into the lesson
- Compounded interest percentage problems
in this site.
Learn the subject from there.