Question

A bank representative studies compound interest so she can better serve customers. She analyzes what happens when 2,000 earns several ways at a rate of 4% for 3 years

Answer 1

Answer:

Final amount = 25,407.4

Step-by-step explanation:

A = P ( 1 + $\frac{r}{t} )n^{}$

A = final amount

P = initial principal balance

r = interest rate

t = number of times interest applied per time period

Here P = 2000

r = 4 %

n = 3 years

A = 2000( 1 + $\frac{4}{3}$ )³

    = 2000( $\frac{7}{3}$ )³

   = 2000 × $\frac{343}{27}$

   = 25,407 .4

Final amount = 25,407.4