Question

total amount = P (1 + i)t What is the total amount that First Consumer Bank will receive after lending Jane $7,000 for three years at an interest rate of 5 percent, compounded annually?

Answer 1

P= principal (initial deposit) ($7000)
i= interest (5%)
t= # of years (3)

Total amount = P (1 + i)^t
T= $7000(1 + 5%)^3
T= 7000(1.05)^3
multiply exponents before regular multiplication
T= 7000(1.157625)
Total= $8,103.38 after 3 years

Hope this helps! :)