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If you deposit $1,000 into a savings account that pays 4% interest compounded annually, how much will you have in the account after 3 years?
- a)$1,120.40
- b)$1,136.73
- c)$1,130.64
- d)$1,124.86
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
If you deposit $1,000 into a savings account that pays 4% interest com...
To calculate compound interest, we use the formula A = P(1 + r/n)(nt), where A is the ending amount, P is the principal, r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
Plugging in the values,
we get A = 1,000(1 + 0.04/1)(1x3)
= $1,136.73.
Plugging in the values,
we get A = 1,000(1 + 0.04/1)(1x3)
= $1,136.73.
Community Answer
If you deposit $1,000 into a savings account that pays 4% interest com...
Calculating the amount in the savings account after 3 years:
- Principal amount: $1,000
- Interest rate: 4%
- Compounding period: Annually
- Time: 3 years
Formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = Amount in the account after t years
P = Principal amount
r = Annual interest rate
n = Number of compounding periods per year
t = Time in years
Calculation:
P = $1,000
r = 4% or 0.04
n = 1 (compounded annually)
t = 3 years
A = 1000(1 + 0.04/1)^(1*3)
A = 1000(1 + 0.04)^3
A = 1000(1.04)^3
A = 1000(1.124864)
A = $1,124.86
Therefore, after 3 years, the amount in the savings account will be $1,124.86. So, the correct answer is option D.
- Principal amount: $1,000
- Interest rate: 4%
- Compounding period: Annually
- Time: 3 years
Formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = Amount in the account after t years
P = Principal amount
r = Annual interest rate
n = Number of compounding periods per year
t = Time in years
Calculation:
P = $1,000
r = 4% or 0.04
n = 1 (compounded annually)
t = 3 years
A = 1000(1 + 0.04/1)^(1*3)
A = 1000(1 + 0.04)^3
A = 1000(1.04)^3
A = 1000(1.124864)
A = $1,124.86
Therefore, after 3 years, the amount in the savings account will be $1,124.86. So, the correct answer is option D.
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If you deposit $1,000 into a savings account that pays 4% interest compounded annually, how much will you have in the account after 3 years?a)$1,120.40b)$1,136.73c)$1,130.64d)$1,124.86Correct answer is option 'D'. Can you explain this answer?
Question Description
If you deposit $1,000 into a savings account that pays 4% interest compounded annually, how much will you have in the account after 3 years?a)$1,120.40b)$1,136.73c)$1,130.64d)$1,124.86Correct answer is option 'D'. Can you explain this answer? for SAT 2025 is part of SAT preparation. The Question and answers have been prepared according to the SAT exam syllabus. Information about If you deposit $1,000 into a savings account that pays 4% interest compounded annually, how much will you have in the account after 3 years?a)$1,120.40b)$1,136.73c)$1,130.64d)$1,124.86Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for SAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If you deposit $1,000 into a savings account that pays 4% interest compounded annually, how much will you have in the account after 3 years?a)$1,120.40b)$1,136.73c)$1,130.64d)$1,124.86Correct answer is option 'D'. Can you explain this answer?.
If you deposit $1,000 into a savings account that pays 4% interest compounded annually, how much will you have in the account after 3 years?a)$1,120.40b)$1,136.73c)$1,130.64d)$1,124.86Correct answer is option 'D'. Can you explain this answer? for SAT 2025 is part of SAT preparation. The Question and answers have been prepared according to the SAT exam syllabus. Information about If you deposit $1,000 into a savings account that pays 4% interest compounded annually, how much will you have in the account after 3 years?a)$1,120.40b)$1,136.73c)$1,130.64d)$1,124.86Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for SAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If you deposit $1,000 into a savings account that pays 4% interest compounded annually, how much will you have in the account after 3 years?a)$1,120.40b)$1,136.73c)$1,130.64d)$1,124.86Correct answer is option 'D'. Can you explain this answer?.
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If you deposit $1,000 into a savings account that pays 4% interest compounded annually, how much will you have in the account after 3 years?a)$1,120.40b)$1,136.73c)$1,130.64d)$1,124.86Correct answer is option 'D'. Can you explain this answer?, a detailed solution for If you deposit $1,000 into a savings account that pays 4% interest compounded annually, how much will you have in the account after 3 years?a)$1,120.40b)$1,136.73c)$1,130.64d)$1,124.86Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of If you deposit $1,000 into a savings account that pays 4% interest compounded annually, how much will you have in the account after 3 years?a)$1,120.40b)$1,136.73c)$1,130.64d)$1,124.86Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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