SOLUTION: A customer deposits $500 in an account that pays 4% annual interest. What is the balance after 3 years if the interest is compounded annually?

Question 952263: A customer deposits $500 in an account that pays 4% annual interest. What is the balance after 3 years if the interest is compounded annually?

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A customer deposits $500 in an account that pays 4% annual interest. What is the balance after 3 years if the interest is compounded annually?
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A(t) = P(1+(r/n))^(nt)
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A(3) = 500(1+0.04/1))^(1*3)
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A(3) = 500(1.04)^3
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A(3) = $562.43
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Cheers,
Stan H.
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