This is a problem that deals with exponential growth and the formula for exponential rate problems is: [tex]y = a(b)^t[/tex], where a= principal amount, b = rate, and t = time.
Let's substitute the corresponding values into its appropriate places: the starting amount is $4,400, the rate is 0.065 but we need to add an 1 because it's an exponential growth problem so it would be 1.065, and the time is 3 years.
Now solve:
[tex]y = $4,400(1.065)^3[tex]
Answer: $5314.98
