Sherrod deposits $500 each year in a saving account earning 3% interest compounded annually. He makes no withdrawals. How much interest will he earn after 3 years. Sherrod deposits $500 each year in a savings account earning 3% interest compounded annually he makes no withdrawals how much interest will get with the account and after 3 years

Question

Mathematics

Casey

6 April, 20:54

Sherrod deposits $500 each year in a saving account earning 3% interest compounded annually. He makes no withdrawals. How much interest will he earn after 3 years. Sherrod deposits $500 each year in a savings account earning 3% interest compounded annually he makes no withdrawals how much interest will get with the account and after 3 years

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Answers (1)

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Washington · Answer 1

The amount of money in Sherrod's account after 3 years will be given by:

A=P (1+r/100) ⁿ

where:

P=principle

r=rate

n=time

From the information:

P=$500, r=3%, n=3 years

thus

A=500 (1+3/100) ³

A=500 (1.03) ³

A=546.3635

Hence the interest earned will be:

546.3635-500

=$ 46. 3635