Question

On your birthday, you deposit $540.00 in an account that pays 6% interest compound anually. How much is in the account 3 years later?

Answer 1

Simple Interest Formula

\[\large P = P_0(1 + r)^t\]

Where Po is your original amount (540 here)
r is your rate...turn your percent into a decimal here (.06 here)
and 't' is the time in years (3 here)

Answer 2

So i multiply it?

Answer 3

Here is the options :
$637.00
$543.18
$643.00
$1,717.20

And if I was suppose to multiply it the answer is not up there.

Answer 4

So we have

\[\large P = 540(1.06)^3\]
\[\large P = 540(1.191016)\]
\[\large P = ?\]

Answer 5

Am I supposed to multiply the second one?

Answer 6

Well yes...

\[\large 540(1.191016)\] is the same as
\[\large 540 \times 1.191016\]

Answer 7

Hello

Answer 8

is it c 643.00

Answer 9

That is correct

Answer 10

Thanks