Question
You deposit $500 in an account that earns 4% simple annual interest. The interest earned each year is added to the principal to create a new principal. Find the total amount in your account after each year for 3 years.
Answers
This is not simple interest. This is compound interest. So you will have
500 * 1.04^3 =____
500 * 1.04^3 =____
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