Question

A principal of $5,690 is placed in an account that earns 5.7% interest. If the interest is coming mont, how muchmoney will be in the account at the end of 3 years? Show work.

Answer 1

Given that:

Principal = $5,690

Rate = 5.7% = 0.057

Number of years = 3 years = 36 months

`\text{Interest = principal x \%rate x time}`
`\begin{gathered} \text{Interest}=5,690*0.057*36 \\ =\text{ \$11,675.88} \end{gathered}`

Therefore, the money in the account at the end of 3 years would be:

`\begin{gathered} \text{Amount = Principal + Interest at the end of 3 years} \\ \text{Amount }=\text{ \$5,690+ \$11,675.88} \\ =\text{ \$17,365.88} \end{gathered}`