You just put $1,000 in a bank account that pays 6% nominal annual interest, compounded monthly.?

Question

How much will you have in your account after 3 years?

Answer 1

calculate it by the rule of 72. You can get double that tax free

Answer 2

Ha! More importantly, just where is this bank account!?

Answer 3

$1,000 x 1.06 = $1,060

$1,060 x 1.06 = $1,123.60

$1,123.60 x 1.06 = $1,191.02 total in account after 3 years.

$191.02 is the increase.