Find the compund interest for the first 3 months if?

an accountant deposited $120 000 in a bank which pays interest at a rate of 3%p.a,calculated on a monthly basis.

Find the compund interest for the first 3 months if?loan forgiveness

3% per annum means 3/12 = 0.25% per month

A = P(1+r)^t

= $120,000*1.0025^3

= $120,902.25

Interest = $120,902.25 - $120,000 = $902.25

Find the compund interest for the first 3 months if?

loan

120000[(1 + .03/ 12)^3 - 1] = close to $ 900. You can deduce the true amount.. Note after 1 month the account is 120000+ 120000(.03/12) = 120000(1 +.03/12), thus after two months..120000(1+.03/12)^2...etc.