Question 1127645
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You are given the formula; just plug in the numbers. Your calculator will give the same answer as mine.<br>
Pay close attention to the exact wording.<br>
>> 7.5%, or .075, is the annual interest rate; since interest is compounded monthly, the interest rate per period is .075/12 = .00625.
>> Since n is the number of compounding periods, n is the number of months in 3 years.<br>