SOLUTION: The principle represents an amount of money deposited in a savings account subject to compound interest at the rate shown. Use the formula
A = P(1 + )nt
to find how much money
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-> SOLUTION: The principle represents an amount of money deposited in a savings account subject to compound interest at the rate shown. Use the formula
A = P(1 + )nt
to find how much money
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Question 427415: The principle represents an amount of money deposited in a savings account subject to compound interest at the rate shown. Use the formula
A = P(1 + )nt
to find how much money will be in the account after the given number of years and how much interest was earned in that period.
principal: $5000
rate: 4%
compounding periods per year: 1
time: 3 years Answer by jorel1380(3719) (Show Source):
You can put this solution on YOUR website! If the principal grows by 4% a year, with compounding interest, after three years your principal will grow by P*(1.04)^3 or;
A = 5000 * (1.04)^3
A = 5000 * 1.124864
A = 5624.32
