If $8,500 is deposited in a compound interest account paying 3.9% interest annually, how much will be in the account after 12 years?

1 answer

Pt = Po(1+r)^n.

r = 3.9% / 100% = 0.039=APR expressed
as a decimal.

n = 1comp/yr * 12yrs.=12 Compounding
periods.

Pt = 8500(1.039)^12 = $13,452.58.