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!!!

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  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

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