Answer:
$9377.02
Step-by-step explanation:
Hi! I hope you had a good New Year!
Ok, so in this problem, you'll have to use the Compound Interest Formula.
The formula goes like this:
[tex]A = P(1+\frac{r}{n})^n^{t}[/tex], where
A = the compound amount (money that you earn after receiving compound interest)
P = Principal (the money that you start with/initial money)
r = represents your interest Rate, but it has to be in decimal, not as a percentage
n = Number of times that the interest is compounded every year (for example, if interest was compounded semi-annually, n would be 6 since the interest is compounded every 6 months/half of the year, hence semi-annually. Or if it was compounded daily, the interest is compounded every day of the year, so n would be 365)
t = time in years
So for this problem, We are told that:
P = 9100
r = 1%, but remember that r has to be a decimal, not a percentage, so instead of 1%, we can just write as a decimal, which is 0.01
t = 3 years
n = 12, since we are told that it is compounded monthly, so the interest compounds every month of the year)
The question is asking for the Compound Amount, which is our A-value in the formula.
We can go ahead and plug in those values for the variables into the formula.
It will look like this:
[tex]A = 9100(1+\frac{0.01}{12}) ^{12(3)[/tex]
If you plug in the right side of the equation into your calculator, you'll get
$[tex]9377.01911058[/tex].
However, since we are dealing with money, we have to round it to the nearest hundredth, or two decimal places like how it says in the question.
So, rounded to the nearest hundredth, your Compound Amount, A, is $9377.02
I hope this helps! If any part of my explanation did not make sense, please let me know! I can always clarify if needed. Have a great rest of your day!
