Answer:
The amount he will have at the end of 3 years is $3742.73
Step-by-step explanation:
* The formula for annual compound interest is:
A = P (1 + r/n)^(nt)
Where:
A = Total money after t years
P = the investment amount (the initial deposited amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested
∵ P = $2860 ⇒ deposited
∵ r = 9% = 9/100 = 0.09 ⇒ annual rate
∵ n = 12 ⇒ compounded monthly
∵ t = 3 years
∴ A = 2860(1 + 0.09/12)^(12 × 3)
∴ A = 2860(1.0075)^36 = $3742.73
* The amount he will have at the end of 3 years is $3742.73
