Answer:
Option a - $3742.73
Step-by-step explanation:
Given : John deposited $2860 in a bank that pays 9% interest, compounded monthly.
To find : The amount he will have at the end of 3 years ?
Solution :
Using compound interest formula,
[tex]A=P(1+r)^t[/tex]
Where, A is the amount
P is the principle P=2860
r is the rate r=9%=0.09
t is the time t= 3 years
Compounded monthly,
[tex]r=\frac{r}{12}=\frac{0.09}{12}=0.0075[/tex]
[tex]t=t\times 12=3\times 12=36[/tex]
Substitute the value,
[tex]A=P(1+r)^t[/tex]
[tex]A=(2860)(1+0.0075)^36[/tex]
[tex]A=2860\times 1.3086[/tex]
[tex]A=3742.725[/tex]
Therefore, Option a is correct.
The amount he will have at the end of 3 years is $3742.73
