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Lina20 [59]
3 years ago
6

A customer deposits $500 in an account that pays 4% annual interest. What is the balance after 3 years if the interest is

Mathematics
1 answer:
irina [24]3 years ago
7 0

Answer:

The value of the investment V(t) after t years is $562.43

Step-by-step explanation:

Here, we are interested in calculating the balance V(t) after 3 years given the information in the question.

We are to use the given formula.

From the question;

V(t) = ?

P= $500

t = 3 years

r = 4% = 4/100 = 0.04

n = 1

Substituting these values into the formula, we have ;

V(t) = 500( 1 + 0.04/1)^(3)

V(t) = 500(1.04)^3

V(t) = 562.432

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