Question

Cody has $1400 in a savings account that earns 4 % annually. How much will he have total after 3 years?

Use the formula = , where is the interest earned, is the principal (starting amount), is the interest rate expressed as a decimal, and is the time in years.

Answer 1

$1,574.81

Steps:

• total after 1 year = (1400/100 × 4) + 1400 = (14 × 4) + 1400 = 56 + 1400 = $1456

• total after 2 years = (1456/100 × 4) + 1456 = (14.56 × 4) + 1456 = 58.24 + 1456 = $1,514.24

• total after 3 years = (1,514.24/100 × 4) + 1,514.24 = (15.14 × 4) + 1,514.24 = 60.57 + 1,514.24 = $1,574.81

Answer 2

$1400 - Savings
4% Per Year
3 Years
4% x 3 = 12% Total
1400 x 12% = $168
$1568 Total