Question

I am confused about his question. I 3000 times.04 times 10 and added that to 3000 to get 4200 but its not an option

QUESTION::suppose you deposit $3000 in a savings account that pays interest in a a rate of 4%. if no money is added or withdrawn from the account, how much will be in the account after ten years.
A.3122.18
B.4994.50
C.4440.73
D.86776.40

Answer 1

if simple yearly interest
intererst each year
= .04 * 3000 = 120

120 * 10 = 1200
so 4200 would be correct
BUT if compounded
3000(1.04)^10 = 3000*1.48 = 4440.73

Answer 2

Thanks