Posted by **Sawa** on Saturday, May 8, 2010 at 5:42pm.

If $3,000.00 is deposited into an account paying 3% interest compounded annually (at the end of each year), how much money is in the account after 4 years? (Round to the nearest cent.)

- math -
**MathMate**, Saturday, May 8, 2010 at 7:43pm
The compound interest formula is

Amount = P(1+r)^{n}

where

P=principal,

r=rate of interest per period (year in this case). 5% per annum is written as 0.05

n=number of periods money is deposited.

For example,

$3000 deposited at 5% per annum for 2 years will yield, when compounded yearly:

Amount=3000*(1+0.05)^{2}

=$3307.50

For 3000 invested at 3% interest compounded yearly for 4 years will yield an amount less than $3400 and in which the amount after the decimal point is $33--.53.

- math -
**Jasmane**, Friday, October 14, 2011 at 4:19am
Principal is $5,000, rate if interest is 6.5%, and time to repayment is 3 years. Compute the compound interest

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