Question
deposit it $2,000 in an account that pays 3% how much is your balance at the end of 8 years
Answers
Arora
Is the interest simple of compounded every year?
hannah
3%compound interest
Arora
So that means each year, your amount will increase by 3%, or, will be (1+0.03), that is, (1.03) times more.
Final Amount = Initial amount * (1.03)^t
= 2000 * (1.03)^8
= 2000 * 1.266
= $2533
Final Amount = Initial amount * (1.03)^t
= 2000 * (1.03)^8
= 2000 * 1.266
= $2533
bobpursley
Good work, Arora. A question you need to usually ask on these, is "is it simple interest, or compound interest, compounded how often (daily, monthly, pr annually?)"
Students often read over these details when they decide they need help.
Students often read over these details when they decide they need help.