Sherrod deposits $500 each year in a saving account earning 3% interest compounded annually. He makes no withdrawals. How much interest will he earn after 3 years.Sherrod deposits $500 each year in a savings account earning 3% interest compounded annually he makes no withdrawals how much interest will get with the account and after 3 years
The amount of money in Sherrod's account after 3 years will be given by: A=P(1+r/100)ⁿ where: P=principle r=rate n=time From the information: P=$500, r=3%, n=3 years thus A=500(1+3/100)³ A=500(1.03)³ A=546.3635 Hence the interest earned will be: 546.3635-500 =$ 46. 3635
