Question

Calculate the amount in an account after one year that starts

with the principal listed below and pays the specified annual
rate of interest compounded yearly.
Principal = $18,000, Rate = 3%

Answer 1

9514 1404 393

Answer:

$18,540

Explanation:

When interest is compounded yearly, the amount of interest earned in one year is the same as the amount of simple interest earned. The account balance is ...

A = P(1 +r) = $18,000(1 +.03) = $18,540