On your birthday, you deposit $540.00 in an account that pays 6% interest compound anually. How much is in the account 3 years later?
The answer is C
yea its C
To find out how much is in the account 3 years later, we need to use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the initial Principal amount (the deposit)
r = annual interest rate (in decimal form)
n = number of times the interest is compounded per year
t = number of years
In this case:
P = $540.00
r = 6% or 0.06 (since it's given as a percentage)
n = 1 (compounded annually)
t = 3 years
Now, let's plug these values into the formula and calculate the final amount:
A = $540(1 + 0.06/1)^(1*3)
A = $540(1 + 0.06)^3
A = $540(1.06)^3
A = $540(1.191016)
A ≈ $643.23
So, there will be approximately $643.23 in the account 3 years later.