Valentina opened a savings account and deposited 1,000.00 as principal the account earns 3%interest compounded monthly what is the balance after 8 years

Respuesta :

According to the problem, the principal is $1,000, the interest is 3% compounded monthly and the time is 8 years.

We have to use the compounded interest formula

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

Replacing the given information, we have

[tex]A=1,000\cdot(1+\frac{0.03}{12})^{12\cdot8}[/tex]

Now, we solve for A

[tex]\begin{gathered} A=1,000(1+0.0025)^{96} \\ A=1,000(1.0025)^{96} \\ A\approx1,270.87 \end{gathered}[/tex]

Hence, she will have $1,270.87 after 8 years.