Question

A principal of $450 is deposited in an account that pays 2.5% interest compounded yearly. Find the account balance after 3 years rounded to the nearest cent.

Answer 1

A=p(1+r)^t
A=450×(1+0.025)^(3)
A=484.60

Answer 2

Total = principal * (1 + rate)^years
Total = 450.00 * (1.025)^3
Total = 450.00 * 1.076890625
Total = 484.60