## If a $3,000 deposit is made into a savings account that pays 6 percent interest, compounded monthly, and there are no ##### This topic has expert replies Moderator Posts: 7112 Joined: Thu Sep 07, 2017 4:43 pm Followed by:23 members ### If a$3,000 deposit is made into a savings account that pays 6 percent interest, compounded monthly, and there are no

by BTGmoderatorDC » Wed Jul 27, 2022 10:34 pm

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## Global Stats

If a $3,000 deposit is made into a savings account that pays 6 percent interest, compounded monthly, and there are no other deposits or withdrawals from the account, how much money, rounded to the nearest dollar, is in the account at the end of one year? A.$2,160
B. $3,180 C.$3,185
D. $5,160 E.$6,037

OA C

Source: Princeton Review

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### Re: If a $3,000 deposit is made into a savings account that pays 6 percent interest, compounded monthly, and there are n by [email protected] » Fri Dec 16, 2022 12:10 pm BTGmoderatorDC wrote: Wed Jul 27, 2022 10:34 pm If a$3,000 deposit is made into a savings account that pays 6 percent interest, compounded monthly, and there are no other deposits or withdrawals from the account, how much money, rounded to the nearest dollar, is in the account at the end of one year?

A. $2,160 B.$3,180
C. $3,185 D.$5,160
E. $6,037 OA C Source: Princeton Review We use the compound interest formula A = P(1 + r/n)^nt, where A is the ending amount, P is the starting amount (P =$3,000), r is the interest rate (r = 0.06), n is the number of times the interest is compounded per year (n = 12), and t is the number of years (t = 1).

The amount of money in the account, rounded to the nearest dollar, at the end of one year is:

A = 3000(1 + 0.06/12)^12 = 3000(1.005)^12 = \$3,185