Question
3300 principal earning 4% compounded annually after three years
Answers
GPT 3.5
To calculate the amount of money earned after three years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment/loan amount
r = the annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years
In this case, the principal (P) is $3300, the annual interest rate (r) is 4% (or 0.04 as a decimal), n = 1 (since interest is compounded annually), and t = 3.
Substituting these values into the formula, we get:
A = 3300(1 + 0.04/1)^(1*3)
A = 3300(1 + 0.04)^3
A = 3300(1.04)^3
A = 3300(1.124864)
A = $3704.84
Therefore, after three years, the principal of $3300 will earn $3704.84.
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment/loan amount
r = the annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years
In this case, the principal (P) is $3300, the annual interest rate (r) is 4% (or 0.04 as a decimal), n = 1 (since interest is compounded annually), and t = 3.
Substituting these values into the formula, we get:
A = 3300(1 + 0.04/1)^(1*3)
A = 3300(1 + 0.04)^3
A = 3300(1.04)^3
A = 3300(1.124864)
A = $3704.84
Therefore, after three years, the principal of $3300 will earn $3704.84.