SOLUTION: An amount of $1,000 is deposited into a bank account that pays 4% interest compounded once a year. If there are no other withdrawals or deposits, what will be the balance of the ac

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Question 1141397: An amount of $1,000 is deposited into a bank account that pays 4% interest compounded once a year. If there are no other withdrawals or deposits, what will be the balance of the account after 3 years? Round your answer to the nearest cent.
Answer by greenestamps(13196) About Me  (Show Source):
You can put this solution on YOUR website!


The original amount grows by a factor of 104% = 1.04 each year for 3 years:

1000%281.04%29%5E3

Use a calculator and round as directed.