Question

$600 is invested for 3 years at a rate of 2.5% per year compound interest.
Calculate the total value of the investment at the end of the 3 years

Answer 1

QUESTION :

• $600 is invested for 3 years at a rate of 2.5% per year compound interest.
• is invested for 3 years at a rate of 2.5% per year compound interest.Calculate the total value of the investment at the end of the 3 years.

ANSWER: GIVEN,

• PRINCIPLE = $600
• TIME = 3
• RATE = 2.5% PER YEAR

FORMULA USING :

• A = P( 1+R/100)^n

SOLUTION :

• A = 600 ( 1+2.5/100 )^3
• A = 600 ( 1+25/10*1/100 )^3
• A = 600 ( 1+1/40 )^3
• A = 600 ( 41/40 )^3
• A = 646.134375

AMOUNT = $646.134375

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