To help Carmen find the total after 3 years
We'll have to use the annual compound interest formula: A = P(1 + r)ⁿ
A = Final balance (?)
P = Principal balance (6000)
r = Rate (0.028)
n = years (3)
A = 6000(1 + 0.028)³
A = 6000(1.028)³
A = 6000(1.086373952)
A = 6518.243712
Round that to the nearest cent, and we get $6,518.24 as the answer.
