Final answer:
To find the balance in Andrew's savings account after 48 months with compound interest, use the formula A = P(1 + r/n)^(nt). Plugging in the values, the balance will be $675.30.
Step-by-step explanation:
To find the balance in Andrew's savings account after 48 months, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
- A is the balance in the account
- P is the principal (initial deposit)
- r is the annual interest rate (as a decimal)
- n is the number of times interest is compounded per year
- t is the number of years
In this case, Andrew deposited $600, so P = 600. The annual interest rate is 3% or 0.03, so r = 0.03. The interest is compounded annually, so n = 1. The number of years is 48/12 = 4, so t = 4.
Plugging in these values into the formula, we get:
A = 600(1 + 0.03/1)^(1*4) = 600(1 + 0.03)^4 = 600(1.03)^4 = 600(1.1255) = 675.30
Therefore, the balance in Andrew's account after 48 months will be $675.30.