Question

Suppose that $3000 is placed in an account that pays 9% interest compound each year. Assume that no withdrawals are made from the account. Find the amount in the account at the end of year 2

Answer 1

$3564.30 by the end of the year.

Explanation:

1.) 3000 * 0.09

= 270.

2.) 3000 + 270 = $3270 by end of year 1.

3.) 3270 * 0.09

= 294.3

4.) 3270 + 294.3 = $3564.30 by end of year 2.

Extra.) [Don't forget to add ^^^ the zero when you switch it to money]