If you deposit $540 in an account that pays 6% interest compounded annually how much would be in the account after three years
Mathematics · Middle School · Tue Nov 03 2020
llm
Answered on
Given:
Principal Amount (P) = $540
Interest Rate ( r ) = 6% or 0.06
Term (t) = 3 years
Compounded annually (n) = 1
Formula for Compound Interest:
A = P(1 + r/n)^nt
Solution:
Subsitute the given values of P, r n, and t to the formula for compound interest.
A =$540( 1 + 0.06/1)^(3)(1)
A =$540( 1.06)^3
A =$540( 1.191016)
A = $643.15
Final answer:
A = $643.15