phineas puts $300 into a certificate of deposit that earns 4.41%. if the money is compounded monthly, how…

phineas puts $300 into a certificate of deposit that earns 4.41%. if the money is compounded monthly, how much will it be worth in 3 years? state your answer in terms of dollars, rounded to the nearest cent, but do not include a $ sign or the word \dollars\ with your response. formula 2 points

phineas puts $300 into a certificate of deposit that earns 4.41%. if the money is compounded monthly, how much will it be worth in 3 years? state your answer in terms of dollars, rounded to the nearest cent, but do not include a $ sign or the word \dollars\ with your response. formula 2 points

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. Here, $P=$300$, $r = 0.0441$ (since $4.41%=0.0441$), $n = 12$ (compounded monthly), and $t = 3$.

Step2: Substitute the values into the formula

$A=300(1 +\frac{0.0441}{12})^{12\times3}$ First, calculate the value inside the parentheses: $\frac{0.0441}{12}=0.003675$, then $1+\frac{0.0441}{12}=1 + 0.003675=1.003675$. Next, calculate the exponent: $12\times3 = 36$. So, $A = 300\times(1.003675)^{36}$.

Step3: Calculate $(1.003675)^{36}$

Using a calculator, $(1.003675)^{36}\approx1.130937$.

Step4: Calculate the final amount

$A = 300\times1.130937=339.2811\approx339.28$

Answer:

339.28