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Calculate the amount of interest earned in 10 years on $1000 invested at 3% per annum, compounded monthly.
how to solve please show me step by step thank you

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lucifer

  1. I will assume you are familiar with the basic compound interest formulas
    i = .03/12 = .0025
    n = 10(12) = 120

    amount = 1000( 1.0025^120 - 1)/.0025
    = ....

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    Reiny

  2. oops, I misread the question as investing 1000 every month, so

    amount = 1000(1.0025)^120
    = $1349.35

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    Reiny

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