Question

Troy opened a savings account and deposited 600.00 as principal the account earns 11%interest compounded monthly what is the balance after 3 years

Answer 1

$\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ A=600(1+\frac{0.11}{12})^{12\cdot3} \\ A=600(1+0.009)^{36} \\ A=600\cdot(1.39) \\ A=833.33 \end{gathered}$$\begin{gathered} \text{where n is 12 (montly), t is equal to 3 years. The rate 11\% is r=0.11 and Principal P=600.} \\ \text{Hence, after 3 years, Troy will have 833.33 dollars in his account.} \end{gathered}$