The formula to calculate the present amount including compound interest is A = P(1 + r/n)nt , where P is the principal amount, r is the annual rate expressed as a decimal , t is the number of years, and n is number of times per year that interest is compounded.
Then A = 2100(1 + 0.045/12)(12 x 3) = 2100 x 1.0037536 = 2402.92
The amount of interest earned = 2402.92 - 2100 = 302.92
It is 0.833... recurring % if the interest is simple, or compounded annually. If compounded monthly, it is approx 0.797 %
"How much money should be deposited at 4.5 percent interest compounded monthly for 3 years?"Incomplete question.... to do what?
$194.25 if interest is compounded annually. A little more if compounded quarterly, monthly, or daily.
Compounded annually: 2552.56 Compounded monthly: 2566.72
$73053.88 when compounded month your yearly rate would be 0.061678% * * * * * True, but in real life the quoted interest rate, "6 percent compounded monthly", should read "an interest rate, such that, if it were compounded monthly, would give an annual equivalent rate of 6 percent". The equivalent of 6% annual is 0.487% monthly since 1.0048712 = 1.06
With simple interest, it is 1.5% per month. If compounded, it is 1.389% approx.
Assuming that the interest rate is 9.75% per year, the answer will depend on how often the interest is compounded.
If it is 10.24% (per month), then the APR is 222%, but if it's 10.24% compounded monthly, then APR is 10.7345%