Latrell puts 3,996.00 into an account to use for school expenses. The account earns 3% interest, compounded annually. How much will be in the account after 5 years?

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Solution

Latrell puts 3, 996.00 into an account to use for school expenses. The account earns 3% interest, compounded annually. How much will be in the account after 5 years?

Solution

Amount : 4632.46

Solution steps

Translate the problem into an equation:

A = 3996 (1 + \frac{0.03}{1})^{1 \cdot 5}

3996 (1 + \frac{0.03}{1})^{1 \cdot 5} = 4632.45920 \dots

Round to the nearest hundredth:

4632.46

Amount : 4632.46

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