36Compound interest formula

$1,500 is invested at 4% a year, compounded monthly. Find its value after 3 years, to the nearest cent.

The investment grows to about $1,690.89. Using A = P(1 + r/n)^(nt) with P=1500, r=0.04, n=12, t=3 gives A = 1500(1.0033333)^36 ≈ 1500(1.127328) ≈ $1,690.89.