SOLUTION: Lisa deposits $625 in an account that earns 4 percent interest compounded annually. How much money is in the account after 3 years?

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Question 1137634: Lisa deposits $625 in an account that earns 4 percent interest compounded annually. How much money is in the account after 3 years?
Found 2 solutions by ikleyn, ankor@dixie-net.com:
Answer by ikleyn(52749) About Me  (Show Source):
You can put this solution on YOUR website!
.

Future value = 625%2A%281%2B0.04%29%5E3 = 625%2A1.04%5E3 = 703.04 dollars.    ANSWER


Answer by ankor@dixie-net.com(22740) About Me  (Show Source):
You can put this solution on YOUR website!
Lisa deposits $625 in an account that earns 4 percent interest compounded annually.
How much money is in the account after 3 years?
:
Annually, so it is pretty simple
A = 625*(1.04)^3
A = 625*1.124864
A = $703.04