Question

You are opening a checking account that earns 5.9% interest each year compounded annually. You deposit $780. After 1 year you will have $826.02. After 2 years you will have $874.76. How much will you have after 3 years?

Answer 1

$926.37

Explanation:

Each year, the balance is multiplied by 1.059.

1.059×$874.76 = $926.37 . . . after 3 years