Question

What is the total amount that First Consumer Bank will receive after lending Jane $7,000 for three years at an interest rate of 5 percent, compounded annually?

Answer 1

7000+5%=7350 1st year
7350+5%=7717.5 2nd. yr.
7717.5+5%=8103.38 3rd. yr.

First consumer bank will receive $1103.38 after 3 years

Answer 2

There are numerous information's already given in the question. Based on these information's the answer can be easily deduced.
Principal (P)= $7000
Rate of interest (i) = 5% = 0.05
Number of years (t) = 3 years
Let us consider the final amount = a
Then
a = P (1 + i)^t
= 7000 (1 + 0.05)^3
= 7000 (1.05)^3
= 7000 * 1.16
= 8129 dollars
The total amount that the First Consumer Bank will receive from Jane is $8129. I hope the answer helps you.