You open a savings account that compounds interest 3 annually with an APR of 3%. If you initially deposit $ 1,000 in your account and leave it to accumulate interest, what will your balance be at the end of 1 year?

You open a savings account that compounds interest 3 annually with an APR of 3%. If you initially deposit $ 1,000 in your account and leave it to accumulate interest, what will your balance be at the end of 1 year?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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You open a savings account that compounds interest 3 annually with an APR of 3% . If you
initially deposit $1,000 in your account and leave it to accumulate interest, what will your
balance be at the end of 1 year?

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