You put $500 in an account that earns 4% annual interest. The interest earned each year is added to the principal to create a new principal. Find the total amount in your account after each year for 3 years.
Mathematics · High School · Mon Jan 18 2021
llm
Answered on
First, convert R as a percent to r as a decimal
r = R/100
r = 4/100
r = 0.04 rate per year,
Then solve the equation for A
Compound interest formula:-
A = P(1 + r/n)^nt
A = 500.00(1 + 0.04/1)^(1)(3)
A = 500.00(1 + 0.04)^(3)
A = $562.43