Question

In: Math

Account Balance after 3 years

You deposit $1000 into a saving account with 9% interest per annum. Assuming no transactions on the account, determine the account balance after 3 years.

Solutions

Expert Solution

The account grows at 9% per year and we are to find the account balance in 3 years assuming no transactions have taken place other than the original deposit. Interest is compounded on the original investment for three years. $1000 is the principal amount with a 9% annual interest and n = 3 years so: $1000(1 + 9%)^3 = 1295.03


$1000(1 + 9%)^3 = $1295.03

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