Question

An investment account earns 4% per year compounded annually. If the initial investment was $4,000.00, how much is in the account after 3 years? Round your answer to the nearest dollar. please show work.

Answer 1

So if 4% was put into the account every year, then you would have to find 4% of 4,000, which is 160. So 160*3=480. 4,000+480= 4,480 dollars. That is how much would be in the account.