Question

Suppose that $6500 is placed in an account that pays 3% interest compound each year. Assume that no withdrawals are made from the account

Find the amount in the account at the end of 1 year

Find the amount in the account at the end of 2 years

Answer 1

Answer:

1 year:

The amount is $6695 and the interest is $195

2 years:

The amount is $6895.85 and the interest is $395.85.