Help please

You deposit $1,000 in a savings account that earns 0.5% each month. Assuming you do not deposit or withdraw any money from the account, how much will you have in the account after 3 years?

Question

Help please

You deposit $1,000 in a savings account that earns 0.5% each month. Assuming you do not deposit or withdraw any money from the account, how much will you have in the account after 3 years?

nesha97 · Answer

i think its 1000(1+0.005)^3 
is this right so far

nesha97 · Answer

would the answer be 1,015.08 ???

3mar · Answer

Are you dealing with Compound or Simple interest rate?

sunnnystrong · Answer

$$A=P(1+\frac{ r }{n })^{nt}$$
A=$ Amount
P= Principle ($1000.00)
r= rate of interest (0.005)
t= time in years (3)
n= # of times per year interest is compounded (1)

$$A=$1000.00(1.005)^{3}$$

sunnnystrong · Answer

@Nesha97 looks good :D

3mar · Answer

That is only in case of compound interest rate, @sunnnystrong !!!
am I right?

princeharryyy · Answer

that's not right. it says interest is accrued every month not year, what u r solving is annual. So, it's wrong.

princeharryyy · Answer

the answer u r getting @sunnnystrong is for 3 months not for 3 years.

sunnnystrong · Answer

@3mar // @princeharryyy
ooops
yeah so:
would be....

$$A=$1000.00(1+\frac{ .005 }{ 12 })^{36}$$

3mar · Answer

@princeharryyy
No it is correct and $n$ refers to how many times in one year, and the question demands the amount $after ~3 ~years$....

princeharryyy · Answer

hold on. let me read the question again.

sunnnystrong · Answer

pretty sure it is compounding interest rate tho @3mar

sunnnystrong · Answer

no idea anymore lol
where's OP hahah

princeharryyy · Answer

@3mar I don't hink u r right on this one. what actually the question means is....

3mar · Answer

But I am sure that it is simple as it does not say "compound"...

princeharryyy · Answer

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