John placed $2,000 in a savings account which compounds interest annually at a rate of 4.3%. How much will he have in the account after 3 years?
Round your answer to the **nearest dollar**.
Do **NOT** round until you have calculated the final answer.

To solve this problem, we'll use the formula for compound interest:

\[
A = P(1 + \frac{r}{n})^{nt}
\]

Where:
- $ A $ is the amount of money in the account after interest.
- $ P $ is the principal amount (initial investment).
- $ r $ is the annual interest rate (in decimal form).
- $ n $ is the number of times the interest is compounded per year.
- $ t $ is the time the money is invested for, in years.

In this case:
- $ P = 2000 $ (initial investment),
- $ r = 4.3\% = 0.043 $,
- $ n = 1 $ (since the interest is compounded annually),
- $ t = 3 $ years.

Now plug these values into the formula:

\[
A = 2000(1 + \frac{0.043}{1})^{1 \times 3}
\]
\[
A = 2000(1.043)^3
\]

Now let's calculate the result.John will have **$2,269** in his savings account after 3 years.

Would you like more details, or do you have any questions about the calculation?

Here are 5 related questions:
1. What if the interest rate were compounded semi-annually instead of annually?
2. How would the result change if the interest rate was 5% instead of 4.3%?
3. What if John left his money in the account for 5 years instead of 3?
4. How much interest would John earn after 3 years?
5. What is the difference between simple interest and compound interest?

**Tip:** When working with compound interest, it's crucial to understand the frequency of compounding (annually, semi-annually, etc.), as it affects the total amount of interest earned.

John placed $2,000 in a savings account which compounds interest annually at a rate of 4.3%. How much will he have in the account after 3 years? Round your answer to the nearest dollar. Do NOT round until you have calculated the final answer.

Learn how to calculate the compound interest for a $2,000 savings account with an annual interest rate of 4.3% over 3 years. This step-by-step solution explains the compound interest formula and provides the final amount rounded to the nearest dollar. Suitable for Grades 9-12.

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