The amount in the account at the end of one year can be found using the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (the initial amount of money)
r = annual interest rate (in decimal form)
n = number of times that interest is compounded per year
t = the time the money is invested for, in years.
In this case, P=$3000, r=8% or 0.08 (in decimal form), n=1 (since interest is compounded once per year), and t=1 year.
Plugging these values into the formula gives:
A = $3000(1 + 0.08/1)^(1*1)
A = $3000(1.08)^1
A = $3000 * 1.08
A = $3240
So, there would be $3240 in the account at the end of one year.
Suppose that $3,000 is placed in an account that pays 8% interest compounded each year assume that no withdrawals are made from the account find the amount in the account at the end of one year
1 answer
1 answer