Solve the problem. Round to the nearest cent.

John deposited $2860 in a bank that pays 9% interest, compounded monthly. Find the amount he will have at the end of 3 years.
a.
$3742.73
c.
$8044.22
b.
$3128.29
d.
$3632.20

Question

Solve the problem. Round to the nearest cent.

John deposited $2860 in a bank that pays 9% interest, compounded monthly. Find the amount he will have at the end of 3 years.
a.
$3742.73
c.
$8044.22
b.
$3128.29
d.
$3632.20

Vocaloid · Answer

$$A = P(1+\frac{ r }{ n })^{nt}$$
P is the principal (2860)
r is interest rate as a decimal (0.09)
n is the # of times it compounds per year (it compounds monthly, so 12)
t is time (in years, so t = 3)
evaluate A