Josie opened a savings account and deposited 3,773.00 as principal. The account earns 3.38% interest, compounded monthly. What is the balance after 3 years?

Solution

Josie opened a savings account and deposited 3, 773.00 as principal. The account earns 3.38% interest, compounded monthly. What is the balance after 3 years?

Solution

Amount : 4175.06

Solution steps

Translate the problem into an equation:

A = 3773 (1 + \frac{0.0338}{12})^{12 \cdot 3}

3773 (1 + \frac{0.0338}{12})^{12 \cdot 3} = 4175.05655 \dots

Round to the nearest hundredth:

4175.06

Amount : 4175.06

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