Suh-Pyng Ku has put $500 in a savings account at the First National Bank of Kent. The

Question:

Suh-Pyng Ku has put $500 in a savings account at the First National Bank of Kent. The account earns 7 percent, compounded annually. How much will she have at the end of three years? The answer is:

$500 × 1.07 × 1.07 × 1.07 = $500 × 1.073 = $612.52 Figure 4.5 illustrates the growth of Suh-Pyng’s account. Suh-Pyng Ku’s Savings Account Dollars $612.52 $500 0 1 T 2 Time 3