Question

A customer of Central States Bank places $3,500 in a savings plus account for 9 months. The interest is 4.5%. What total amount is in the account at the end of this time?

Answer 1

if simple interest, 3500*.045*9/12 = 118.13

if compounded monthly, 3500(1+.045/12)^9-3500 = 119.91