Jill received a stipend of $1,000 for the extra work she does on the job. She is going to deposit the money into her bank account that receives an annual compound interest of 4%.

The account balance after year 3 is what

Question

Miranda Tanner

Mathematics

21 May, 02:53

Jill received a stipend of $1,000 for the extra work she does on the job. She is going to deposit the money into her bank account that receives an annual compound interest of 4%.

The account balance after year 3 is what

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Answers (1)

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Miriam Walker · Answer 1

Answer: The account balance after year 3 is $1125

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P (1+r/n) ^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 1000

r = 4% = 4/100 = 0.04

n = 1 because it was compounded once in a year.

t = 3 years

Therefore,

A = 1000 (1+0.04/1) ^1 * 3

A = 1000 (1+0.04) ^3

A = 1000 (1.04) ^3

A = $1125

Jill received a stipend of $1,000 for the extra work she does on the job. She is going to deposit the money into her bank account that receives an annual compound interest of 4%.The account balance after year 3 is what

Jill received a stipend of $1,000 for the extra work she does on the job. She is going to deposit the money into her bank account that receives an annual compound interest of 4%.

The account balance after year 3 is what