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andrey2020 [161]
2 years ago
9

$1,700 is deposited in an account that pays 6.5% annual interest, compounded annually. What is the balance after 3 years?

Mathematics
1 answer:
notsponge [240]2 years ago
6 0

Answer: $2053.51

Step-by-step explanation:

The formula for compound interest is A=P(1+\frac{r}{n} )^{nt}

Where

A = final amount

P = initial principal balance (1700 for this)

r = interest rate (0.065 for this)

n = number of times interest applied per time period (1 for this)

t = number of time periods elapsed (3 for this)

A=1700(1+\frac{0.065}{1})^{(3)(1)}  \\A=1700(1.065})^{3}  \\A=2053.51435

Rounded that is 2053.51

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