Don put $3,000 in a savings account with an interest rate of 5% for three years. If the interest is compounded annually, how much money will he have at the end of the three years?
compounded anually means if you put x in at y percent then you calculate like this if you put in x at y percent then the money you earn is x +(x times y)=z=first year second year=z+(z times y)=s third year=s+(s times y)=t
percent means parts out of 100 so 5%=5/100=0.05 'of' can be translated as multiply so
3000 +(3000 times 0.05)=3150=fisrt year 3150+(3150 times 0.05)=3307.5=second year 3307.5 +(3307.5 times 0.05)=3472.88=tird year
