Question

If you deposit $540 in an account that pays 6% interest compounded annually how much would be in the account after three years

Answer 1

A=$643.15

Explanation:

We can use the formula

`A=P(1+(r)/(n) )^(nt)`

Now we can plug the information in the problem into the formula

`A=540(1+(0.06)/(1) )^((1)(3))\\\\A=643.15`

Answer 2

The amount after 3 year = $ 643.15

Explanation:

Compound interest formula:

A = P[1 +R/n]^nt

Where A - amount

P - principle amount

R = rate of interest

t - number of times compounded yearly

n number of years

To find the amount after 3 years

Here P = $540, R = 6%, t = 1 and n = 3 years

A = P[1 +R/n]^nt

= 650[1 + 0.06/1]^(3*1)

= 540[1.06]^3

= $ 643.15