Expert: Sherman D. - 10/15/2007

Question
Hello,I was wondering if you can help me with the following problem?  Thank you in advance for your time and help.

Michael has an extra $505 each month after paying his bills.  
Instead of spending his additional earnings each month, Michael chooses to open a savings account offering 3% interest, accrued monthly.  Calculate the amount of money Michael will have in his savings account at the end of each of the following periods.
(a)three months
(b)six months
(c)one year


Answer
If you are saying that each month he puts in an additional 505. I don't know if i'm doing this right or not.

I = P * t * (1 + r)^t

a.)
I = 3(505)(1.03)^3
I = $1655.48

b.)
I = 6(505)(1.03)^6
I = $3617.98

c.)
I = 12(505)(1.03)^12
I = $8640.11

you may need to ask answers.yahoo.com just to be sure.