Question

You deposit 350 in an account that pays 3% annual intrest. Find the balance afer 2 years if the intrest is compounded

Answer 1

`\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$350\\ r=rate\to 3\%\to (3)/(100)\dotfill &0.03\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &2 \end{cases} \\\\\\ A=350\left(1+(0.03)/(1)\right)^(1\cdot 2)\implies A=350(1.03)^2\implies A=371.315`