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.

sus

mogus

1 520

2 540.80
3 562.43

To find the total amount in your account after each year for 3 years, you need to calculate the interest earned each year and add it to the principal.

First, let's calculate the interest earned each year. The formula for calculating simple interest is:

Interest = Principal × Rate × Time

In this case, the principal is $500, the rate is 4%, and the time is 1 year. Substituting these values into the formula:

Interest = $500 × 0.04 × 1 = $20

So, you earn $20 in interest in the first year.

To find the total amount in your account after the first year, you need to add the interest earned to the principal:

Total amount after year 1 = Principal + Interest = $500 + $20 = $520

Now, for the second year, you will use the new principal of $520 to calculate the interest earned:

Interest = $520 × 0.04 × 1 = $20.80

So, you earn $20.80 in interest in the second year.

To find the total amount in your account after the second year, you need to add the interest earned to the principal:

Total amount after year 2 = Principal + Interest = $520 + $20.80 = $540.80

Finally, for the third year, you will use the new principal of $540.80 to calculate the interest earned:

Interest = $540.80 × 0.04 × 1 = $21.63 (rounded to two decimal places)

So, you earn $21.63 in interest in the third year.

To find the total amount in your account after the third year, you need to add the interest earned to the principal:

Total amount after year 3 = Principal + Interest = $540.80 + $21.63 = $562.43 (rounded to two decimal places)

Therefore, the total amount in your account after each year for 3 years would be as follows:

- After the first year: $520
- After the second year: $540.80
- After the third year: $562.43

500 * 1.04^3

This is just compound interest

srsly

but what is the answer