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You deposit $ 342 each year into an IRA earning 6.9 % interest compounded annually. How much will you have in the account in 3 years?

1 Answer

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Given:

Principal, P = $342

Interest rate, r = 6.9% = 0.069

number of times compounded, n = annually = 1

Time, t = 3 years

Let's find the amount in the account after the given time.

Apply the compound interest formula:


A=P(1+r)^t

Where:

P = $342

r = 0.069

t = 3

A is the amount after the given time.

Thus, we have:


\begin{gathered} A=342(1+0.069)^3 \\ \\ A=342(1.069)^3 \\ \\ A=342(1.221611509) \\ \\ A=417.79 \end{gathered}

Therefore, the amount in the account after 3 years will be $417.79

ANSWER:

$417.79

User GrandmasterB
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