Algebra-1

1. Use the compound interest formula:

The compound interest formula when compounded  times a year is , where:

 is the future value of the investment.

 is the principal amount (the initial investment). Here, .

 is the annual interest rate (in decimal form). Here,  (3% annual interest rate).

 is the number of times interest is compounded per year. Since it's compounded monthly, .

 is the number of years. Here, .

2. Substitute the values into the formula:

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