You are going to deposit $3,300 in an account that pays. 39 percent interest compounded monthly. How much will you have in 9 years?

The answer is $3,417.81

Explanation:

We will be using the compound interest formula, which is:

A = P (1 + r/n) ^nt

Where:

A - final amount

P - principal = $3,300

r - rate = 0.39% or 0.0039

n - number of times interest is compounded per time period = 12 (we will be using 12 because the interest is compounded monthly every year)

t - number of years = 9

Note: ^ means 'to the power of'

We solve thus:

A = 3,300 (1+0.0039/12) ^12x9

A = 3,300 (1+0.000325) ^108

A = 3,300 (1.000325) ^108

A = 3,300 x 1.0357

A = 3,417.81

Therefore the amount after 9 years, compounded monthly is $3,417.81