The Allens are saving up to go on a family vacation in 3 years. They invest $2300 into an account with an annual interest rate of 1.27%, compounded monthly. Assuming no withdrawals are made, how much money is in the Allens' account after 3 years and how much interest is earned on the Allens' investment after 3 years?
Added by Rebecca L.
Step 1
To do this, divide the annual interest rate by 12 (the number of months in a year). Monthly interest rate = 1.27% / 12 = 0.0105833 (rounded to 7 decimal places) Show more…
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