Answer :

The formula to apply is ;

A= P{1+r/n}^nt

where

A= amount at the end of the period

P= starting amount = $1200

r= rate of interest =4%= 0.04

n=number of compoundings per annum = 1

t= time period = 3

Using the values in the equation as;

A= 1200{ 1+ 0.04} ^3

A= 1200{1.04}^3

A= $1349.84

Answer

Amount = $1349.84

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