Farid opened a savings account and deposited 10,000.00 as principal. The account earns 4% interest, compounded monthly. What is the balance after 3 years?

Solution

Farid opened a savings account and deposited 10, 000.00 as principal. The account earns 4% interest, compounded monthly. What is the balance after 3 years?

Solution

Amount : 11272.72

Solution steps

Translate the problem into an equation:

A = 10000 (1 + \frac{0.04}{12})^{12 \cdot 3}

10000 (1 + \frac{0.04}{12})^{12 \cdot 3} = 11272.71874 \dots

Round to the nearest hundredth:

11272.72

Amount : 11272.72

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