Find the amount in an account if $3,500 is invested at 6.12% compounded monthly, for 4.5 years

4606.48 $

Step-by-step explanation:

Amount invested P = 3500 $

Rate of interest r = 6.12%

Compounding monthly

Monthly rate of interest = 6.12/12 = 0.51%

Time = 4.5 years = 4.5 (12) = 54 months

Hence final amount would be

P (1+0.01r) ^t

Here r = 0.51 and t = no of months = 54

Hence final amount

= 3500 (1.0051) ^54

= 3500 (1.31613)

=4606.48 $

Thus 3500 if invested now will become 4606.48 in 4.5 years at the rate of interest of 6.12% compounding monthly.