Answer:
The value of the account will be $5,628
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=21\ years\\ P=\$3,000\\ r=3\%=3/100=0.03\\n=12[/tex]
substitute in the formula above
[tex]A=3,000(1+\frac{0.03}{12})^{12*21}[/tex]
[tex]A=3,000(1.0025)^{252}[/tex]
[tex]A=\$5,628[/tex]
therefore
The value of the account will be $5,628
