An investment account earns 4% per year compounded annually. If the initial investment was $4,000.00, how much is in the account after 3 years? Round your answer to the nearest dollar.

fotaczkak4

fotaczkak4

Answered question

2022-08-05

An investment account earns 4% per year compounded annually. If the initial investment was $4,000.00, how much is in the account after 3 years? Round your answer to the nearest dollar.

Answer & Explanation

Madilyn Dunn

Madilyn Dunn

Beginner2022-08-06Added 16 answers

Compound Interest Formula:
A = P ( 1 + r n ) n t
Here P is the principal A is the amount and t is the time in years,
r is the rate of interest and n is the number of compoundings per year.
Time t= 3 years.
Rate of interest r =4 %
Compound annually.
Compoundings per year n=1
Amount in the account after 3 years is
A = P ( 1 + r n ) n t = 4 , 000 ( 1 + 0.04 1 ) 1 × 3 = 4 , 000 ( 1.04 ) 3 = 4499.456 4499
Thus, the amount in the account after 3 years is approximately $4499

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