Answer:
The formula of Compound Interest is:
[tex]A = P(1+\frac{r}{n})^{nt}[/tex]
where A = Amount
P = Principle
r = rate
n = Number of Compounding per year
t = total number of year
a. For Dani
Here, P = 1000, r = 3% = 0.03, n = 12(monthly), and time = t.
Putting all these values in above formula:
[tex]A = 1000(1+\frac{0.03}{12})^{12\timest}[/tex]
⇒ [tex]A = 1000(\frac{12.03}{12})^{12t}[/tex]
⇒ [tex]A = 1000(1.0025)^{12t}[/tex]
