Question

Bernard invests $480 at a rate of 4.5% per year compound interest. Calculate the amount he receives at the end of 3 years.

Answer 1

principal =p =$480

rate of interest = r= 4.5%

number times he pays the interest = n =3


Amount =A= p(1+r/100)^n


=480(1+4.5/100)^3
= 480*104.5/100*104.5/100*104.5/100

=$547.75