SOLUTION: You deposit $500 into an account earning 3% interest compounded monthly. a) How much will you have in 13 years? c) How much total interest will you earn?

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Question 1176279: You deposit $500 into an account earning 3% interest compounded monthly.
a) How much will you have in 13 years?
c) How much total interest will you earn?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!

Hi

 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29
A = Accumulated Amount
P= principal = 500
r= annual rate = .03
n= periods per year = 12
t= years = 13
A%28t%29+=+500%281%2B.03%2F12%29%5E%28156%29+=+500%281.0025%29%5E%28156%29 = $738.13

c) How much total interest will you earn?  $738.13 - $500

Wish You the Best in your Studies.