171k views
3 votes
$1,700 is deposited in an account that pays 6.5% annual interest, compounded annually. What is the balance after 3 years?

User Rshankar
by
8.0k points

1 Answer

9 votes

Answer: $2053.51

Explanation:

The formula for compound interest is
A=P(1+(r)/(n) )^(nt)

Where

A = final amount

P = initial principal balance (1700 for this)

r = interest rate (0.065 for this)

n = number of times interest applied per time period (1 for this)

t = number of time periods elapsed (3 for this)


A=1700(1+(0.065)/(1))^((3)(1)) \\A=1700(1.065})^(3) \\A=2053.51435

Rounded that is 2053.51

User Destan
by
7.7k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories