Question

On your birthday, you deposit $540.00 in an account that pays 6% interest, compounded annually. How much is in the account 3 years later? (1 point)

a.$637.20
b.$543.18
c.$643.15
d.$1,717.20

Answer 1

remember the formula for compount interest
here we have principal P =540
interest rate r= 0.06
compounded anually so n=1
and time is t=3

Answer 2

Compound interest formula is M = P(1 + i)^n
Where M = the final amount
P = the principal
i = interest rat per year
n = number of years invested
M = 540(1 + 0.06)^3

Answer 3

You first do what's in the parenthesis.
so 1 + .06 =?

Answer 4

that is a decimal before the 06

Answer 5

okay, now you calculate 1.06 to the power of 3

Answer 6

powers are the number multiplied by itself, that many times
so it would be the same as saying (1.06)(1.06)(1.06)

Answer 7

1.06 * 1.06 =?

Answer 8

you're adding them together and you need to be multiplying them

Answer 9

very good, now multiply that number by the amount being invested which is 540

Answer 10

and since you're dealing with money you'll need to round to the nearest 2 decimal places.

Answer 11

so that number rounded off should give you?

Answer 12

You would be correct.

Answer 13

anytime

Answer 14

sure

Answer 15

The simple interest formula is I = Prt
Where I = the interest
P = the principal
r = the interest rate
t = the time it takes you to pay of the loan
I = (500)(0.03)(2)

Answer 16

Solve the problem as it sits to give you A)
Add the amount borrowed with the answer for A) to give you B)

Answer 17

the parenthesis mean those numbers are being multiplied

Answer 18

you need to multiple one more number into that

Answer 19

that's your A)

Answer 20

$30 in interest will be paid

Answer 21

B) is the sum of the principal and the interest

Answer 22

Unless you have another question about these problems I'd say were done.
I hope that helped