Question

Find the value of an investment after 3 years for a $3000 annuity due at 8%​

Answer 1

Given :

Principle : $3000

Rate of interest : 8%

Time : 3 years

To find :

The total value of the investment after the time period.

Solution :

To find the total amount, first we should find the simple interest.

Simple Interest :

$\sf \dashrightarrow SI = \dfrac{P \times R \times T}{100}$

$\sf \dashrightarrow \dfrac{3000 \times 8 \times 3}{100}$

$\sf \dashrightarrow \dfrac{3000 \times 24}{100}$

$\sf \dashrightarrow \dfrac{30 \times 24}{1}$

$\sf \dashrightarrow \dfrac{720}{1} = 720$

Now, let's find the total amount.

Total Amount :

$\sf \dashrightarrow Simple \: Interest + Principle$

$\sf \dashrightarrow 720 + 3000$

$\sf \dashrightarrow Rs.3720$

Hence, the total value of the investment at end of 3 years is ₹3720.