Question 316658
Compound interest formula:
{{{A = P(1 + i/n)^(nt)}}}
Where
A is amount after time t
P is the principal
i is the interest
n is number of times compounded
t is time (in years)
.
{{{A = P(1 + i/n)^(nt)}}}
Plug in what was given:
{{{A = 4000(1 + .045/12)^(12*3)}}}
{{{A = 4000(1 + .00375)^(36)}}}
{{{A = 4000(1.00375)^36}}}
A = $4,576.99