1. Questions

Math

Roman saves $500 each year in an account earning interest at an annual rate of 4% compounded annually. How much interest will the account earn at the END OF THE FIRST THREE YEARS?

I think I am confusing simple and compounded interest. The answer I got was $123.23

Am I waaaaaay off and over thinking this??? TIA for your help!!!

  1. 👍
  2. 👎
  3. 👁
Amanda

  1. if you'd show your work, we could tell whether you were confused or not.
    After 3 years, Roman would have
    500*1.04^3 = 562.43
    so, he earned $62.43

    No way to tell how you got your answer. Way too high

    1. 👍
    2. 👎
    Steve

Respond to this Question

First Name

Your Response

Similar Questions

  1. math

    Mr. Flores opened an account with a deposit of $5,000 The account earned annual simple interest. He did not make any additional deposits or withdrawals. At the end of 4 years, the balance of the account was $6,500. What is the

  2. MATH

    1. An employee put $5,000.00 in a retirement account that offers 9% interest compounded annually. The employee makes no additional deposits or withdrawals. Which amount is closest to the interest the employee will have earned at

  3. math

    Yvonne put $4,000 in a savings account. At the end of 3 years, the account had earned $960 in simple interest. A. how much does she have in her account at the end of 3 years? B. at what annual simple interest rate did the account

  4. magh

    suppose you put money into teo different bank accounts. In account #1 you deposit $500 and you will be earning 6% interest compounded quarterly. in account #2 you deposit $600 and you will be earning 5% interest compounded

  1. Math

    Sarah has $480 in her savings account earning 4/1/4% interest. How much interest will she earn in 2/1/2 years? How much money will be in the account after 2/1/2 years? First year -- $480 x .0425 = $20.40 ..................$480 +

  2. math

    Rosa invested $8000 for one year, part ast 8% annual interest and the balance at 10% annual interest. Her total interest for the year was $700. How much money did she invest at each rate?

  3. Algebra( check my answers)

    1. Juan deposited $200 in a savings account earning 3% interest over 2 years. What was the total amount of interest earned after 2 years? $12 $24 $120 ( my answer) $240 2. Mary borrowed $11,000 at 5% interest for 4 years. What was

  4. math

    You deposit $500 in an account that earns 4% simple annual interest. The interest earned each year is added to the principal to create a new principal. Find the total amount in your account after each year for 3 years.

  1. pre-algebra

    You split $1500 between two savings accounts. Account A pays annual 5% interest and Account B pays 4% annual interest. After one year,you have earned a total of $69.50 in interest. How much money did you invest in each account?

  2. finance

    14. Assume Julian has a choice between two deposit accounts. Account A has an annual percentage rate of 7.55 percent but with interest compounded monthly. Account B has an annual percentage rate of 7.45 percent with interest

  3. algebra

    sam saved his money until he had $10000 to invest.he invested x dollars into certificate of deposit (cd) with an annual interest rate of 2% and the remaining y dollars into a mutual fund with annual interest of 1.5% total interest

  4. Algebra

    Gwen has saved $3,500 and wants to deposit it into a savings account that earns 4% annual interest for 10 years. Complete the table below to help Gwen compare her earnings in a simple interest account versus a compound interest

You can view more similar questions or ask a new question.