the following money market account rates were available from a particular bank. find the compound amount and…

the following money market account rates were available from a particular bank. find the compound amount and the interest earned. $17,000 at 1.03% compounded monthly for three years\nthe compound amount is $. (do not round until the final answer. then round to the nearest cent as needed.)

the following money market account rates were available from a particular bank. find the compound amount and the interest earned. $17,000 at 1.03% compounded monthly for three years\nthe compound amount is $. (do not round until the final answer. then round to the nearest cent as needed.)

Answer

Explanation:

Step1: Identify the compound - interest formula

The compound - interest formula is $A = P(1+\frac{r}{n})^{nt}$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), $n$ is the number of times interest is compounded per year, and $t$ is the number of years.

Step2: Convert the given values to the appropriate form

Given $P=$17000$, $r = 1.03%=0.0103$, $n = 12$ (compounded monthly), and $t = 3$ years.

Step3: Substitute the values into the formula

$A=17000(1 +\frac{0.0103}{12})^{12\times3}=17000(1+\frac{0.0103}{12})^{36}$. First, calculate $\frac{0.0103}{12}\approx0.00085833$. Then $1+\frac{0.0103}{12}=1 + 0.00085833=1.00085833$. Next, $(1.00085833)^{36}\approx1.031197$. Finally, $A = 17000\times1.031197\approx17530.35$.

Answer:

$17530.35$