Answer:
$3,438.45
Explanation:
The amount invested is the sum of Bob's and Judy's savings:
[tex]P=\$1,700+\$700\\P=\$2,400[/tex]
The equation that gives the future value of an investment P, at an annual interest rate r for t years, compounded monthly, is:
[tex]FV = P*(1+\frac{r}{12})^{12t}[/tex]
Therefore, the account balance after 12 years of an initial investment of $2,400 at 3% is:
[tex]FV = \$2,400*(1+\frac{0.03}{12})^{12*12}\\ FV= \$3,438.45[/tex]
The account balance after 12 years will be $3,438.45.
