Question

$1400 is deposited into a savings account that earns 6% compound interest for three years. What is the total balance after three years?

Answer 1

Answer:

Principal P=$1400

Rate of interest r=6%

number of years n=3

To find the total balance after three years

Amount after n years is,

$=P(1+\frac{r}{100})^n$

Substitute the values we get,

$=1400(1+\frac{6}{100})^3$$=1400\times1.06^3$$=1400\times1.191016$$=1,667.4224\approx1,667.4$

Answer is: 1,667.4