Question

You put $500 in an account that earns 4% annual interest. The interest earned each year is added to the principal to create a new principal. Find the total amount in your account after each year for 3 years.

Year 1 =
Year 2 =
Year 3 =

Answer 1

year 1 $520

year 2 $540.80

year 3 $562.43

Explanation:

100 + 4 = 104

104/100= 1.04

500 X 1.04^of how many years