Kiara opened a savings account and deposited 1,000.00 as principal. The account earns 3% interest, compounded monthly. What is the balance after 4 years?

Solution

Kiara opened a savings account and deposited 1, 000.00 as principal. The account earns 3% interest, compounded monthly. What is the balance after 4 years?

Solution

Amount : 1127.33

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.03}{12})^{12 \cdot 4}

1000 (1 + \frac{0.03}{12})^{12 \cdot 4} = 1127.32802 \dots

Round to the nearest hundredth:

1127.33

Amount : 1127.33

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