Question

$1400 is deposited into a savings account that earns 6% compound interest for three years. What is the total balance after three years?

Answer 1

Principal P=$1400

Rate of interest r=6%

number of years n=3

To find the total balance after three years

Amount after n years is,

`=P(1+(r)/(100))^n`

Substitute the values we get,

`=1400(1+(6)/(100))^3`
`=1400*1.06^3`
`=1400*1.191016`
`=1,667.4224\approx1,667.4`

Answer is: 1,667.4