Question

Connor deposited $2,315 in a savings account earning 14% interest, compounded annually.To the nearest cent, how much will he have in 3 years?

Answer 1

Given that:

Principal amount, P = $2315

Rate of interest, r = 14% = 0.14

Number of years, n = 3

Use the formula

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

Substitute the given values.

`\begin{gathered} A=2315(1+(0.14)/(3))^3 \\ =2315(1.04667)^3 \\ =2654.46 \end{gathered}`