Question

An investment account earns 4% per year compounded annually. If the initial investment was
$4,000.00, how much is in the account after 3 years? Round your answer to the nearest dollar

Answer 1

Use the formula \[A = P(1+r/n)^{nt}\]
Where:
P = initial amount invested - 4000
R is the rate 0.04
N is the number of times it is compounded for year (1).
T is the time, 3

So the equation would be:

\[A = 4000(1.04)^{1(3)}\]

Can you solve from there?