Question

Denise deposited $9,000 in a savings account earning 14% interest, compounded annually.To the nearest cent, how much will she have in 3 years?

Answer 1

Given that,

Denise deposited $9,000 in a savings account earning 14% interest, compounded annually.

To find the amount after compounded annually after 3 years.

we get that,

P=$9000

r=14%

n=3

we know the formula forAmount with Compound interest rate r% and after n years as,

`A=P(1+(r)/(100))^n`

Substituting the values we get,

`A=9000(1+(14)/(100))^n`
`A=9000(1.14)^3`
`A=9000(1.481544)`
`A=13,333.896`
`A=13,333.90`

Answer is: Required amount is $13,333.90