Question

An investment account earns 4% per year compounded annually. If the initial investment was $4,000.00, how much is in the account after 3 years? Round your answer to the nearest dollar.

Answer 1

4% would equal 0.04

$4,000 x 0.04 = $4,160
$4,160 x 0.04 = $4,326.40
$4,326.40 x 0.04 = $4,499.456

The answer would be rounded to $4,499