Algebra-1

Question Analysis
This question evaluates the student's ability to apply the compound interest formula to a more complex scenario involving monthly compounding. The key is to correctly substitute the values and perform the necessary calculations.

Key Concept Explanation
Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods. The formula for compound interest is , where is the final amount, is the initial principal, is the annual interest rate, is the number of times interest is compounded per year, and is the time in years.

Step-by-step Solution
1. Identify the given values: dollars, , , and years.
2. Substitute these values into the compound interest formula: .
3. Simplify the expression inside the parentheses: