t's going to make a difference whether that 4 percent is compounded more
than once a year.
We'll do the calculation assuming it's compounded only once a year, and if it
turns out to be compounded more often than that, then the calculation will
come out on the low side, and you'll wind up with a little bit more than $3,000.
P times (1.04)3 = $3,000
P = 3,000/(1.04)3 = $2,666.980769 or $2,667