theshatteredpanda
contestada

An investment account earns 4% per year compounded annually if the initial investment was $4000 how much is the account after three years? Round your answer to the nearest dollar

Respuesta :

apologiabiology
compounded annualy makes it easier
[tex]A=P(1+r)^t[/tex]
A=future amount
P=present amount
r=rate in decimal
t=time in years


given
P=4000
r=4%=0.04
t=3

[tex]A=4000(1+0.04)^3[/tex]
[tex]A=4000(1.04)^4[/tex]
A=4499.456
round

about $4499 in the account after 3 years
zexius
[tex]4000 * (\frac{100+4}{100} )^{3} = 4499.46[/tex]

To the nearest dollar, it's $4499.


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