John placed $2,000 in a savings account which compounds interest annually at a rate of 4.3%. How much will he have in the account after 3 years?

Respuesta :

Pf=Pi(1+r)^t
Pf=2000(1.043)^3
Pf=2269.25
$2269.25

The amount that should have after 3 years in the account is $2,269.53.

Given that,

  • The present value is $2,000.
  • The rate of interest is 4.3%
  • And, the time period is 3 years.

Based on the above information, the future value should be

= Present value × (1 + rate)^time period

= $2,000 × (1 + 4.3%)^3

= $2,269.53

Therefore we can conclude that the amount that should have after 3 years in the account is $2,269.53.

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