# Example 3

- Author:
- Walch Education

An investment of $500 is compounded monthly at an annual rate of 3%. What is the equation that models the value of the investment? Graph the equation both on a calculator and on graph paper.

- Read the problem statement and then reread the problem, determining the known quantities.
- Substitute the known quantities into the general form of the compound interest formula,
. - Graph the equation using a graphing calculator.
- Transfer your graph from the screen to graph paper.