Answer:
$51.83
Step-by-step explanation:
Use the formula for amount after compound interest: [tex]FV = P(1 + i)^{n}[/tex]
"FV" is the future value, or total amount after the elapsed time
"P" is the principal, or starting investment
"i" is the interest rate each year
"n" is the number of compounding periods
Since interest is compounded monthly, the compounding time is 12.
Calculate "i" by dividing the (annual interest rate) by the (compounding time)
Convert the percentage to decimal form by dividing by 100.
i = 3.6% ÷ 12
= 0.036 ÷ 12
= 0.003
Calculate "n" by multiplying the (number of years) by the (compounding time)
n = 1*12 = 12
P = 50 because that is the deposit.
Substitute P, i and n into the equation
FV = P(1 + i)ⁿ
FV = 50(1 + 0.003)¹²
FV = 51.83
Therefore, the future value is $51.83.
