Question

Please help fast! Sherman deposited $3000 in an account paying 8% interest compounded annually. He withdrew his money and interest 3 years later. How much did he withdraw?

Answer 1

He withdrew $3720. Use the formula I ( interest)= prt (principle, rate, time), and then add the interest earned to what he originally deposited.

Answer 2

The formula A = P (1 + r) ^ t will help, given that
A = the future value at withdraw
P = the initial deposit
r = the annual interest rate (decimal)
t = the number of years the money is invested for
so the equation is A = 3000 (1.08) ^ 3, which is $3779.14