Question

$3,300 principal earning 4%, compounded annually, after 3 years

$3,712.05
$211,200.00
$3,696.00
$10,296.00

Answer 1

$3,712.05

Explanation:

Using compounding:

result= 3300*1.04^3= $3,712.05

Answer 2

$3,300 principal earning 4%, it is 3300 * 4 / 100 = $132
so 3,300 + $132 = $3432 (it is for year 1)
let's find year 2
the 4% of $3432 is $3432*4/100=$137.28,
so $3432 + $137.28 =$ 3569.28 (it is for year 2)
the 4% of $ 3569.28 is $142.77
so the amount is $3512.05
so the answer is $3,712.05