Question

How much money will you have in 6 years if you invest $3000 at a 3.1% annual rate of interest compounded monthly?

Answer 1

Result

The amount is $3612.32 and the interest is $612.32.

Explanation

STEP 1: To find amount we use formula:

A=P(1+rn)n⋅t

In this example we have

P=$3000 , r=3.1% , n=12 and t=6 years

After plugging the given information we have

AAAA=3000(1+0.03112)12⋅6=3000⋅1.00258372=3000⋅1.204105=3612.32

STEP 2: To find interest we use formula A=P+I, since A=3612.32 and P = 3000 we have:

A3612.32II=P+I=3000+I=3612.32−3000=612.32

Answer 2

Hi,

$x+3.1\%\;of\;x=1.031x\\\\\text{After 6 years, then }\\\\3\;000\times1.031^6\approx3\;603$

After 6 years, you will have $3 603 wich is not much after this time.
It is like + $100 each year.

I hope I understood correctly the question..
If not tell me !