Question

Suppose you deposit $\$900$ per month into an account that pays $4.8\%$ interest, compounded monthly. How much money will you have after $9$ months?

• A. 8432.97$
• B. 1372.44$
• C. 9812.97$
• D. None of these

Answer 1

The correct option is D None of these

Here, $P=\$900,R=4.8\%$ and $T=9$ months $=\frac{3}{4}$ year

$\Rightarrow$ $A=P{(1+\frac{R}{100})}^{4T}$

$\Rightarrow$ $A=900\times {(1+\frac{4.8}{100})}^{4\times \frac{3}{4}}$

$\Rightarrow$ $A=900\times {\left(\frac{131}{125}\right)}^3=900\times 1.1510$

$\Rightarrow$ $A=\$1035.9$