To calculate the amount in Marcus's account after 5 years, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (initial amount of money), which is $300 in this case.
r = the annual interest rate (in decimal form), which is 3% or 0.03.
n = the number of times that interest is compounded per year, which is 12 for monthly compounding.
t = the time the money is invested for in years, which is 5 years in this case.
Let's plug in the values and calculate the amount in Marcus's account after 5 years
After plugging in the values and doing the math, the amount in Marcus's account after 5 years would be approximately $349.85. That's the power of compound interest! If you have any more questions or need help with anything else, feel free to ask!
