Answer:
The total amount after 3 years is = $ 2054.10
Explanation:
Given data
Principal Amount (P) = $ 1800
Rate of interest (R) = 4.5 %
Thus the total amount after 3 years compounded annually is given by the formula = P × [tex][1 +\frac{R}{100} ]^{3}[/tex]
⇒ 1800 × [tex][1 +\frac{4.5}{100} ]^{3}[/tex]
⇒ 2054.10
Thus the total amount after 3 years is = $ 2054.10
Compound interest earned in three years = 2054.10 - 1800 = $ 254.10
