If $3000 is invested at 3% compounded monthly how much in 9 years
To calculate how much the investment will grow to after 9 years, compounded monthly at a rate of 3%, we can use the formula for compound interest:
A = P * (1 + r/n)^(n*t)
Where:
A is the future value of the investment
P is the principal amount (initial investment)
r is the annual interest rate (as a decimal)
n is the number of times the interest is compounded per year
t is the number of years
In this case:
P = $3000
r = 3% = 0.03 (note: we divide by 100 to convert the percentage to a decimal)
n = 12 (compounded monthly)
t = 9 years
Substituting the given values into the formula:
A = 3000 * (1 + 0.03/12)^(12*9)
Calculating the expression inside the parentheses:
(1 + 0.03/12)^(12*9) ≈ 1.3498588
Multiplying the principal amount by the result:
A ≈ 3000 * 1.3498588
A ≈ $4049.57
Therefore, the investment will grow to approximately $4049.57 after 9 years, compounded monthly at a rate of 3%.