Question

Martha opened a savings account and deposited 400.00 the account earns 1%interest compounded annually what is the balance after 3 years

Answer 1

p = 400.00

r = 1% = 1/100 = 0.01

t = 3 years

Therefore,

`\begin{gathered} Amount=p(1+(r)/(n))^(nt) \\ \text{Amount}=400(1+(0.01)/(1))^(1*3) \\ \text{Amount}=400*1.030301 \\ \text{Amount}=\text{ \$}412.1204 \\ \text{Amount}=\text{ \$412.12} \end{gathered}`

After three years the amount will be = $412.12