math

If $3,000.00 is deposited into an account paying 3% interest compounded annually (at the end of each year), how much money is in the account after 4 years? (Round to the nearest cent.)

  1. 👍
  2. 👎
  3. 👁
  1. The compound interest formula is
    Amount = P(1+r)n
    where
    P=principal,
    r=rate of interest per period (year in this case). 5% per annum is written as 0.05
    n=number of periods money is deposited.

    For example,
    $3000 deposited at 5% per annum for 2 years will yield, when compounded yearly:
    Amount=3000*(1+0.05)2
    =$3307.50

    For 3000 invested at 3% interest compounded yearly for 4 years will yield an amount less than $3400 and in which the amount after the decimal point is $33--.53.

    1. 👍
    2. 👎
  2. Principal is $5,000, rate if interest is 6.5%, and time to repayment is 3 years. Compute the compound interest

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. PRE-CALCULUS

    . Sam won $150,000 in the Michigan lottery and decides to invest the money for retirement in 20 years. Find the accumulated value for Sam’s retirement for each of his options: (a) a certificate of deposit paying 5.4% compounded

  2. Business Math

    Lee Holmes deposited $ 15,000 in a new savings account at 9% interest compounded semiannually, At the beginning of year 4, Lee deposites an additional $40000 at 9% interest compounded semiannually. At the end of the 6 years what

  3. Business Math

    Shelley Katz deposited $30,000 in a savings account at 5% interest compounded semiannually. At the beginning of year 4, Shelley deposits an additional $80,000 at 5% interest compounded semiannually. At the end of 6 years, what is

  4. Math

    suppose that when your friend was born your friends parents deposited $4000 in an account paying 4.1% interest compounded quarterly. what will the account balance be after 15 years?

  1. Math

    Lee Holmes deposited $15,000 in a new savings account at 9% interest compounded semiannually. At the beginning of year 4, Lee deposits an additional $40,000 at 9% intrest compounded semiannually. At the end of 6 years, what is the

  2. Lat math question for some days. Can y'all help?

    Huan deposited $850 into a college savings account earning 4.8% interest compounded annually. He also deposited $850 into a second account earning 4.8% simple interest. He made no additional deposits. After 10 years, which account

  3. Math

    Please help me and show an understanding please, so I see how to figure them out. Lee deposited $28,000 in an interest-bearing checking account that earns 3.5% interest compounded daily. Find the amount after 68 days. a.$183.16

  4. math

    As a savings plan for college, when their son Bob was born, the Wilburs deposited $10,000 in an account paying 8% compounded annually. How much will the account be worth when Bob is 18 years old?

  1. Math

    1. How much will $800 deposited into a savings account at the end of each month be worth after 2 years at 6% interest compounded monthly? 2. How much will $3,500 deposited at the beginning of each 3-month period be worth after 7

  2. algebra

    Suppose your parents deposited $1,500 in an account saying 3.5% interest compounded annually (once a year) when you were born. I have to find the account balance after 18 years , please help

  3. Math

    Find the future value of $800 deposited at 5% for 2 years if the account pays simple interest, and the account pays interest compounded annually

  4. math

    Huan deposited $850 into a collegesavings account earning 4.8% interestcompounded annually. He also deposited$850 into a second account earning 4.8%simple interest. He made no additionaldeposits. After 10 years, which account

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