Answer:
Value of her fund after 3 years of saving is [tex]3446.34[/tex]
Explanation:
Let the rate of interest be applicable on yearly basis.
Given
Principal money [tex]= 240[/tex] dollar per month
So yearly she deposit
[tex]240 * 12 \\= 2880[/tex]
dollar per year
time period is three years
As we know that
[tex]A = P (1+\frac{r}{n} )^{nt}\\[/tex]
Substituting the given values we get
[tex]A = 2880 (1 + \frac{0.06}{12} )^{12*3} \\A = 3446.34[/tex]
Value of her fund after 3 years of saving is [tex]3446.34[/tex]
