Answer:
$24.35
Step-by-step explanation:
We will use the compound interest formula provided to solve this problem:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, change 1% into a decimal:
1% -> [tex]\frac{1}{100}[/tex] -> 0.01
Since the interest is compounded monthly, we will use 12 for n. Lets plug in the values now:
[tex]A=800(1+\frac{0.01}{12})^{12(3)}[/tex]
[tex]A=824.35[/tex]
Lastly, subtract A from the principal to get the interest earned:
[tex]824.35 - 800 = 24.35[/tex]
