Question

A principal of $5,690 is placed in an account that earns 5.7% interest. If the interest is coming mont, how muchmoney will be in the account at the end of 3 years? Show work.

Answer 1

Given that:

Principal = $5,690

Rate = 5.7% = 0.057

Number of years = 3 years = 36 months

$\text{Interest = principal x \%rate x time}$$\begin{gathered} \text{Interest}=5,690\times0.057\times36 \\ =\text{ \ 11,675.88} \end{gathered}$

Therefore, the money in the account at the end of 3 years would be:

$\begin{gathered} \text{Amount = Principal + Interest at the end of 3 years} \\ \text{Amount }=\text{ \ 5,690+ \ 11,675.88} \\ =\text{ \ 17,365.88} \end{gathered}$