Question

Sherrod deposits $500 each year in a saving account earning 3% interest compounded annually. He makes no withdrawals. How much interest will he earn after 3 years.Sherrod deposits $500 each year in a savings account earning 3% interest compounded annually he makes no withdrawals how much interest will get with the account and after 3 years

Answer 1

The amount of money in Sherrod's account after 3 years will be given by:
A=P(1+r/100)ⁿ
where:
P=principle
r=rate
n=time
From the information:
P=$500, r=3%, n=3 years
thus
A=500(1+3/100)³
A=500(1.03)³
A=546.3635
Hence the interest earned will be:
546.3635-500
=$ 46. 3635