Answer:
$1207.96
Step-by-step explanation:
The accumulated value for simple interest is defined by the following formula:
FV=PV(1+it)
we have (where x is the present value or PV)
1200= x(1+.05*3)
Solve for x
1200=1.15x
x=1043.478261
We now need to use the equation for annually compounding interest
[tex]FV=PV(1+i)^t[/tex]
We have
[tex]1043.4782(1+.05)^3\\1207.956522[/tex]
which rounds to
$1207.96
