Answer:
The answer is $3,417.81
Explanation:
We will be using the compound interest formula, which is:
A = P(1 + r/n)^nt
Where:
A - final amount
P - principal = $3,300
r - rate = 0.39% or 0.0039
n - number of times interest is compounded per time period = 12 (we will be using 12 because the interest is compounded monthly every year)
t - number of years = 9
Note: ^ means 'to the power of'
We solve thus:
A = 3,300(1+0.0039/12)^12x9
A = 3,300(1+0.000325)^108
A = 3,300(1.000325)^108
A = 3,300 x 1.0357
A = 3,417.81
Therefore the amount after 9 years, compounded monthly is $3,417.81
