Question

Jill received a stipend of $1,000 for the extra work she does on the job. She is going to deposit the money into her bank account that receives an annual compound interest of 4%.
The account balance after year 3 is what

Answer 1

Answer:

10

Step-by-step explanation:

Answer 2

Answer: The account balance after year 3 is $1125

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 1000

r = 4% = 4/100 = 0.04

n = 1 because it was compounded once in a year.

t = 3 years

Therefore,

A = 1000(1+0.04/1)^1 × 3

A = 1000(1+0.04)^3

A = 1000(1.04)^3

A = $1125