SOLUTION: please help me solve this equation $1000 is invested at 4% for 3 years. How much will the account be worth if the interest is compounded monthly?

Question 200538: please help me solve this equation
$1000 is invested at 4% for 3 years. How much will the account be worth if the interest is compounded monthly?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!

Start with the compound interest formula

Plug in p=1000 (the amount invested), r=0.04 (this is the decimal form of 4% interest), n=12 (compounded monthly), and t=3 (3 years)

Divide 0.04 by 12 to get 0.00333333 (this value is approximate)

Multiply the exponents 12 and 3 to get 36

Add 1 and 0.00333333 to get 1.00333333

Raise 1.00333333 to the 36th power to get 1.1272717

Multiply 1000 and 1.127137 to get 1,127.2717

So if you invest $1,000 at an interest rate of 4%, which is compounded 12 times a year for 3 years, the return is about $1,127.27 (which is rounded to the nearest cent)
RELATED QUESTIONS
How much money will there be in an account at the end of 4 years if $6000 is deposited at (answered by rfer)

A principal of $4800 is invested at 4.5% interest, compounded annually. How much will the (answered by ikleyn)

Please help me solve this: Suppose $1000 is invested at an annual rate of 5.7%... (answered by stanbon,scott8148)

Please show your work: $2,350 is invested in account paying 9% compounded... (answered by Alan3354,rfer)

Determine how much money will be in a savings account if the initial deposit was $1000... (answered by solver91311)

If $7000 is invested at 8% compounded monthly, how much will this amount be at the end of (answered by jim_thompson5910)

how much will $5,000 invested at 3% intrest be worth in 4 years if it is compounded... (answered by lynnlo)

if $ 10,000 is invested in an account at 3% annual interest compounded quaterly, how much (answered by lwsshak3)

PLEASE HELP ASAP! Solve the problem and express your answer to the nearest tenth. How... (answered by nerdybill)