Answer:
1545.62
Step-by-step explanation:
The calculation of compound interests uses this formula:
[tex]A = P (1 + \frac{r}{n} )^{n*t}[/tex]
Where A = total amount, P = principal or amount of money deposited, r = annual interest rate, n = number of times compounded per year and t = time in years.
So, if we plug-in the numbers of the problem we have:
[tex]A = 1500 (1 + \frac{0.03}{12} )^{12*1}[/tex]
Which gives us:
[tex]A = 1500 * 1.0025^{12} = 1500 * 1.030416 = 1545.62[/tex]
For a grand total of 1,545.62 including capital and interests.
