SOLUTION: Daniel has $1200 in the bank. He is earning 3.5% compound interest each month. How much money will he have in the bank in one year?

Question 1022468: Daniel has $1200 in the bank. He is earning 3.5% compound interest each month. How much money will he have in the bank in one year?
Found 2 solutions by Cromlix, Alan3354:
Answer by Cromlix(4381) (Show Source): You can put this solution on YOUR website!
Hi there,
100 + 3.5
= 103.5%
= 103.5/100 = 1.035
$1200 x 1.035^12
= $1813.28 after a year.
Hope this helps :-)
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
Daniel has $1200 in the bank. He is earning 3.5% compound interest each month. How much money will he have in the bank in one year?
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If it's 3.5% per month (not likely, that's loan shark interest) the other tutor's answer is good.
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If it's 3.5% per year compounded monthly that's 3.5%/12 per month.
Use (1 + 0.035/12)^12 as the multiplier.
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