If $1,000 is invested in an account that pays 4% interest compounded annually, an expression that represents the amount in the account at end of three years can be given by which of the following equations?

A.1000(0.3)^3

B. 1000+0.4^3

C.1000(1.04)^3

Question

If $1,000 is invested in an account that pays 4% interest compounded annually, an expression that represents the amount in the account at end of three years can be given by which of the following equations?

 		A.1000(0.3)^3	

 		B. 1000+0.4^3	

 		C.1000(1.04)^3

anonymous · Answer

no

anonymous · Answer

So that's your job to find it, then I'll help you to apply it :)

anonymous · Answer

M = P( 1 + i )n

M is the final amount including the principal.

P is the principal amount.

i is the rate of interest per year.

n is the number of years invested.

anonymous · Answer

it would be c?

anonymous · Answer

Almost, except M = P( 1 + i )^n

anonymous · Answer

Wow, it's fast and correct :)

anonymous · Answer

haha thankyou

anonymous · Answer

All you need is knowing which formula to apply :)
Most of the time you thought it's difficult, but if you know the formula then ...=)