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 three years?

Answer 1

To the nearest dollar, it's $4499.

Explanation:

Answer 2

`\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{current amount}\\ P=\textit{original amount deposited}\to &\$4,000.00\\ r=rate\to 4\%\to (4)/(100)\to &0.04\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, means once} \end{array}\to &1\\ t=years\to &3 \end{cases}`