Algebra-1

Question Analysis
This question requires students to apply the compound interest formula to a situation with a mixed time period (years and months). The key is to convert the time to a decimal and correctly identify the values for the principal, interest rate, number of compounding periods, and time.

Key Concept Explanation
The compound interest formula is given by: where:
is the final amount (future value) including principal and interest,
is the initial principal,
is the annual interest rate (as a decimal),
is the number of times interest is compounded per year,
is the time the money is invested for, in years.

Step-by-step Solution
1. Identify the given values: , , (monthly compounding), and (3 years and 6 months).
2. Substitute these values into the compound interest formula: