Question

A $6,300.00 principal earns 6% interest, compound annually. After 3 years, what is the balance in the account

Answer 1

6300*.06=378*3=1134 always remember when doing this multiply the amount you get by years

Answer 2

.06 interest earned
x 3 years
-----
.18 total interest earned

$6,300.00 balance
x .18 total interest earned
--------------
$444.0000
+ $630.0000
------------------
$1,074.00 total interest

$1,074.00
+ $6,300.00
-----------------
$7,374 is the total balance in the account after 3 years.

Your answer is $7,374.