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fgiga [73]
3 years ago
10

Melissa put her $500 In a savings account that earns 4% interest compounded annually. How much will be in the account after 3 ye

ars? Round your answer to the nearest hundredth
Mathematics
2 answers:
kramer3 years ago
7 0

Answer: $562.43

Step-by-step explanation:

The initial start up amount is 500  and we want to expressed this as an exponential function. So since we know the initial value we need to find the rate of change. So if you earn 4% interest you are earning 4% percent more on top the actual 100%.

So 100%  + 4 % = 104% = 1.04  

The common difference is 1.04.

so  500 * 1.04^n= A where n is the number of years and A is the total amount.

A = 500 * 1.04^{3}  

A= 562.43

Serhud [2]3 years ago
4 0
<h3>Answer: $562.43</h3>

Work Shown:

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

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

A = 562.432

A = 562.43

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