Answer:
$970. 19
Step-by-step explanation:
Using the compound interest formula Accrued Amount = P (1 + r)^t
where Accrued amount is to be determined
P = principal; $870
r = 3.7% = 0.037
t = number of years = 3
Therefore
Accrued amount = 870 (1 + 0.037)^3
Accrued amount = 870 x 1.037^3
= 870 x 1.1152
= 970. 19
Hence balance of the account at the end of 3 years is $970. 19
