Question

A person deposited $3000 into a high yield saving account that has an apr of 4.8% compounded annually. What is the total amount in the account after 3 years? Show all your work.

Answer 1

The total amount in the account after 3 years is approximately $3408.58.

Step-by-step explanation:

To calculate the total amount in the account after 3 years, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:

• A = the final amount in the account
• P = the principal (initial deposit)
• r = the annual interest rate (as a decimal)
• n = the number of times the interest is compounded per year
• t = the number of years

In this case, the principal is $3000, the annual interest rate is 4.8% (0.048 as a decimal), the interest is compounded annually (n = 1), and the number of years is 3.

Using the formula, we can calculate the final amount:

A = 3000(1 + 0.048/1)^(1*3)

A = 3000(1 + 0.048)^3

Using a calculator, we can evaluate this expression:

A ≈ $3408.58

Therefore, the total amount in the account after 3 years is approximately $3408.58.