Question

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

Answer 1

Answer: $562.43

Step-by-step explanation:

i got it right on edge 2020

Answer 2

A(t) = P(1+(r/n))^(nt)

A(3) = 500(1+0.04/1))^(1*3)

A(3) = 500(1.04)^3

A(3) = $562.43