You put $1000 in a savings account which earns compound interest at a rate of 0.1% per month. If you don't make any deposits or withdrawls, how much will you have in your account in 3 years (36 months) ? Round your answer to the nearest whole cent.

Question

Mathematics

Sox

27 March, 16:14

You put $1000 in a savings account which earns compound interest at a rate of 0.1% per month. If you don't make any deposits or withdrawls, how much will you have in your account in 3 years (36 months) ? Round your answer to the nearest whole cent.

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Marc Duncan · Answer 1

Amount in compound interest = p (1 + r) ^n where p is the initial deposit, r = rate and n = period.

Here, Amount after 36 months = 1000 (1 + 0.1/100) ^36 = 1000 (1 + 0.001) ^36 = 1000 (1.001) ^36 = 1000 (1.036637) = $1,036.64