SOLUTION: Steve's bank pays an annual interest rate of 2.8 percent on a savings account. The interest is compounded monthly. If Steve deposits $1,000 in a savings account, how much interes

Question 603361: Steve's bank pays an annual interest rate of 2.8 percent on a savings account. The interest is compounded monthly. If Steve deposits $1,000 in a savings account, how much interest will he earn in 3 months?
Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!

 

Hi,

Note:  In General: 

P= principal = 1000

r= annual rate = .028

m= periods per year = 12

t= years = 1/4





A= $1006.01

interest earned in 3 months = $6.01 

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