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This problem involves calculating the future value of an investment using compound interest. The formula for compound interest is:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]
Where:
- $A$ = the amount of money in the account after interest
- $P$ = the principal (initial investment)
- $r$ = the annual interest rate (in decimal form)
- $n$ = the number of times the interest is compounded per year
- $t$ = the number of years

### Given:
- $P = 1100$ (the initial investment)
- $r = 1.33\%$ (which is 0.0133 as a decimal)
- $n = 1$ (since the interest is compounded annually)
- $t = 3$ years

### (a) Calculate how much money is in Milan’s account after 3 years.

Using the compound interest formula:
\[
A = 1100 \left(1 + \frac{0.0133}{1}\right)^{1 \times 3}
\]
\[
A = 1100 \left(1 + 0.0133\right)^3
\]
\[
A = 1100 \times (1.0133)^3
\]
\[
A = 1100 \times 1.040357
\]
\[
A \approx 1,144.39
\]

So, after 3 years, Milan's account will have **$1,144.39**.

### (b) How much interest is earned after 3 years?

To calculate the interest earned, subtract the initial principal from the final amount:
\[
\text{Interest} = A - P = 1,144.39 - 1,100 = 44.39
\]

So, Milan earned **$44.39** in interest over 3 years.

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Would you like further details on this problem? Here are some related questions to explore:

1. What would the total amount be after 5 years with the same interest rate?
2. How much interest would Milan earn if the interest rate were 2% instead of 1.33%?
3. What happens if the interest is compounded quarterly instead of annually?
4. How much would Milan earn after 3 years if he invested $1,500 instead of $1,100?
5. How would the investment change if the interest rate were compounded monthly?

### Tip: When dealing with compound interest, always ensure to convert percentages into decimal form and use the correct compounding period for accurate calculations.

Milan received a $1100 bonus. He decided to invest it in a 3-year certificate of deposit (CD) with an annual interest rate of 1.33% compounded annually. Assuming no withdrawals are made, how much money is in Milan's account after 3 years? How much interest is earned on Milan's investment after 3 years?

Learn how to calculate the future value and interest earned on a $1100 investment over 3 years with an annual interest rate of 1.33% compounded annually. This problem demonstrates the use of the compound interest formula, suitable for students in Grades 10-12.

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