Find the balance in the account. $3000 principal earning 3% compounded annually, after 4 years.2. A tractor costs $14,340 and depreciates in value by 15% per year. How much will the tractor be worth after 3 years?

Answer:Part 1) [tex]\$3,376.53[/tex]  Part 2) [tex]\$8,806.55[/tex]Step-by-step explanation:Part 1) we know that    The compound interest formula is equal to  [tex]A=P(1+\frac{r}{n})^{nt}[/tex]  where  A is the Final Investment Value  P is the Principal amount of money to be invested  r is the rate of interest  in decimal t is Number of Time Periods  n is the number of times interest is compounded per year in this problem we have  [tex]t=4\ years\\ P=\$3,000\\ r=0.03\\n=1[/tex]  substitute in the formula above  [tex]A=\$3,000(1+\frac{0.03}{1})^{1*4}=\$3,376.53[/tex]  Part 2) we know thatThe formula to calculate how much will the tractor be worth after t years is equal to[tex]P=C(1-r)^{t}[/tex]where  C is the original cost  P is the depreciated value  r is the rate of depreciation  in decimal t is the number of years  in this problem we have  [tex]t=3\ years\\ C=\$14,340\\ r=0.15[/tex]  substitute the values[tex]P=\$14,340(1-0.15)^{3}=\$8,806.55[/tex]