#### Explanation:

I assume you mean compound interest acquired monthly.

$A = {A}_{0} {\left(1 + \frac{r}{100}\right)}^{t}$

• Under the assumption that you earn 4% each month...

=> $23000*1.04^3 =>$ 25871.872 which would round to color(red)($25871.87 Jan 3, 2018 $23,226.63

#### Explanation:

Interest is assumed to be per year unless specifically stated as otherwise. Assuming monthly compounding of interest 4% per annum is equivalent to:
root(12)(1.04)-1=0.0032737397822=0.327...% per month.

Final value after $3$ monthly periods at this rate would be:
color(white)("XXX")$23,000xx(1+0.00327...)^3=$23226.63