Question

Wilson invests $5000 at 5.25% per annum compound interest compounded annually find the interest by the end of third year

Answer 1

Step-by-step explanation:

Given Wilson invests $5000 at 5.25% per annum compound interest compounded annually find the interest by the end of third year

• Given Principal = $ 5000
• Rate = 5.25%
• Time = 3 years
• Now Amount = P(1 + r/100)^n
•                     = 5000 (1 + 5.25 / 100)^3
•                     = 5000 (1 + 525 / 10000)^3
•                     = 5000 (1 + 0.0525)^3
•                     = 5000 (1.0525)^3
•                     = 5000 x 1.1659134531
•        Amount = 5,829.56
• Now Compound Interest = Amount – Principal
•                                        = 5,829.56 – 5000
•                                        = Rs 829.56
• Therefore interest at the end of third year will be Rs 829.56

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https://brainly.in/question/16949399