On your birthday, you deposit $540.00 in an account that pays 6% interest, compounded annually. How much is in the account 3 years later?
(1 point)
• $637.20
• $543.18
• $643.15***
• $1,717.20
Yes, you're right.
how did you get that answer
Yes, you're right for now
when i did it it always came out as 190.8
Basically you add 1 + 0.06 and multiply 1.06 x 1.06 x 1.06 (3 times total), then you multiply the result by 540 and you get something around 643.15.
To calculate the amount in the account after 3 years, we can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
Where:
A = the amount in the account after t years
P = the initial deposit amount ($540.00)
r = the annual interest rate (6% or 0.06 as a decimal)
n = the number of times interest is compounded per year (annually in this case)
t = the number of years (3 years)
Plugging in the values into the formula:
A = 540(1 + 0.06/1)^(1*3)
A = 540(1 + 0.06)^3
A = 540(1.06)^3
A = 540(1.191016)
A ≈ 643.15
Therefore, the amount in the account 3 years later is approximately $643.15. The correct answer is $643.15.