Question

Javier invests $750 for 3 years at a rate of 1.8% per year compound interest.
Calculate the value of his investment at the end of the 3 years

Answer 1

Answer:

$787.50

Explanation:

Principal (P)= $750

Rate (R) = 1.8%

Time (T) = 3 years

$Amount (A) = P(1+R/100)^{T}$

$A = 750(1+1.8/100)^{3}$

$A = 750(509/500)^{3}$

$A = 750(1.05)$

A = 787.50

Hence, his investment at the end of three years would be $787.50.