Question

If you deposit $540 in an account that pays 6% interest compounded annually how much would be in the account after three years

Answer 1

Answer:

A=$643.15

Step-by-step explanation:

We can use the formula

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

Now we can plug the information in the problem into the formula

$A=540(1+\frac{0.06}{1} )^{(1)(3)}\\\\A=643.15$

Answer 2

Answer:

The amount after 3 year = $ 643.15

Step-by-step explanation:

Compound interest  formula:

A = P[1 +R/n]^nt

Where A - amount

P - principle amount

R = rate of interest

t - number of times compounded yearly

n  number of years

To find the amount after 3 years

Here P = $540, R = 6%, t = 1 and n = 3 years

A = P[1 +R/n]^nt

 = 650[1 + 0.06/1]^(3*1)

 = 540[1.06]^3

 = $ 643.15