Billy opened a savings account and deposited 1,000.00 as principal. The account earns 5% interest, compounded annually. What is the balance after 3 years?

Solución

Billy opened a savings account and deposited 1, 000.00 as principal. The account earns 5% interest, compounded annually. What is the balance after 3 years?

Solución

Amount : 1157.625

Pasos de solución

Translate the problem into an equation:

A = 1000 (1 + \frac{0.05}{1})^{1 \cdot 3}

1000 (1 + \frac{0.05}{1})^{1 \cdot 3} = 1157.625

Amount : 1157.625

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