You put $500 in an account that earns 4% annual interest. the interest earned each year is added to the principal to create a new principal. find the total amount in your account after each year for 3 years.
a) year 1 = $
b) year 2 = $
c) year 3 = $

A) $ 520

B) $ 540.8

C) $ 562.432

Step-by-step explanation:

Since, the amount formula in compound interest calculated annually,

Where,

P = principal amount,

r = annual interest rate,

t = number of years,

A) P = $ 500, r = 4% = 0.04, t = 1,

B) P = $ 520, r = 0.04, t = 1,

C) P = $ 540.8, r = 0.04, t = 1,

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step-by-step explanation:

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step-by-step explanation: