Question

Juan deposits $1,500 into a savings account that pays 4.5% interest compounded annually. If Juan makes no deposits or withdrawals, how much money will be in his savings account after 3 years?

Answer 1

$1711.5

Explanation:

Step one

given data

Principal = $1500

interest rate= 4.5% = 0.045

time = 3 years

Step two:

The compound interest expression is

`A= P(1+r)^t\\\\A=1500(1+0.045)^3\\\\A=1500(1.045)^3\\\\A=1500*1.141\\\\A=1711.5`