Answer:
$515.21
Step-by-step explanation:
Because you're compounding monthly, use the formula:
[tex]A(t)=P(1+\frac{r}n)^{nt}}[/tex]
where A(t) is the amount after the compounding,
P = $500
r = .03 (always in decimal form!)
n = 12 (monthly is every month, and there are 12 months in a year) and
t = time in years
Filling in our given info:
[tex]A(t)=500(1+\frac{.03}{12})^{(12)(1)[/tex] which simplifies to
A(t) = 500(1 + .0025)¹² which simplifies to
A(t) = 500(1.0025)¹² which simplifies to
A(t) = 500(1.030415957) so
A(t) = $515.21
