If $5,600 is deposited into an account paying 5% interest compounded annually (at the end of each year), how much money is in the account after 3 years?

Question

Are you familiar with the formula

Amount = Principal(1+i)^n ?

Amount = 5600(1+.05)^3
= 5600(1.05)^3

etc.

$5,600 x 5% = 280 x 3 = $840 will be in the account after 3 years.

sorry glenda...when u involve compound interest..u have to use the formula Reiny used. Simple percentages cannot be used.
Hope this helps.