Find the value after five years of a $3,000 savings account that pays 3% interest compounded yearly. Round the answer to two decimal places.(1 point)
$
The formula to calculate the future value of an investment with compound interest is:
A = P(1 + r/n)^(nt)
where:
A = the future value of the investment
P = the initial deposit or principal amount ($3,000 in this case)
r = annual interest rate (3% in this case)
n = number of times interest is compounded per year (since it is compounded yearly, n = 1)
t = number of years (5 years in this case)
Using the formula:
A = 3000(1 + 0.03/1)^(1*5)
A = 3000(1 + 0.03)^5
A = 3000(1.03)^5
Calculating this:
A ≈ 3,463.45
Rounded to two decimal places, the value after five years will be approximately $3,463.45.