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

Algebra ->  Customizable Word Problem Solvers  -> Finance -> 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      Log On

 

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