How much would 500 invested at 9 percent interest compounded monthly be worth after 3 years round your answer to the nearest cent do not include units in your answer?

Answer 1

Lets write in a scenario of a bank account. Also since this seems to come from a school textbook - this is going to be a basic answer containing only 6 months worth of computed interest.

Your first month you deposited 500.00 which needs to be times by 9% which should equate to 45 of interest the 1st month.

Let's continue:

Let the numbers represent the 1st month, 2nd month, and so on.

1. 500.00 x 0.09 = 45.00 + 500.00 = 545.00
2. 545.00 x 0.09 = 49.05 + 545.00 = 594.05
3. 594.05 x 0.09 = 53.47 + 594.05 = 647.52
4. 647.52 x 0.09 = 58.28 + 647.52 = 705.80
5. 705.80 x 0.09 = 63.52 + 705.80 = 769.32
6. 769.32 x 0.09 = 69.24 + 769.32 = 838.56

Now you have 6 months worth of computed interest on your original 500. Take the time to continue on for the remaining 30 months.