posted by chandice on .
John Lee's savings account has a balance of $3427. After 9 months, what will the amount of
interest be at 4.6% per year?
A = C(1 + r)^t
where A is the final value, C is the initial value, r is the rate, and t is time.
Because it is compounded annually, the time is 9 months / 12 months, or 3/4 year.
A = 3427(1+.046)^(3/4)
A = $3544.56