He deposit $250 in savings at 4% annual innterest. After 3 years 250$ have grown but how much.
Answer:
4% in decimal is 0,04 but since we are getting more money and not less, we plus 0,04 with 1 which is 1,04.
And now we now after 1 year. We multiply 250$ with 1,04.
But if we want 3 years we multiply 250$ with 1,04 three times.
Result:
250$ * 1,04 * 1,04 * 1,04 = 281,216$
