Question
What will the final balance be for $924 invested at 4% compounded annually for three years?
Answers
GPT 3.5
The formula to calculate the final balance with compound interest is:
Final Balance = P(1 + r/n)^(nt)
Where:
P = Principal amount (initial investment) = $924
r = annual interest rate = 4% = 0.04
n = number of times interest is compounded per year = 1 (annually)
t = number of years = 3
Plugging in the values:
Final Balance = $924(1 + 0.04/1)^(1*3)
Final Balance = $924(1.04)^3
Final Balance = $924(1.124864)
Final Balance = $1038.81
Therefore, the final balance for $924 invested at 4% compounded annually for three years will be approximately $1038.81.
Final Balance = P(1 + r/n)^(nt)
Where:
P = Principal amount (initial investment) = $924
r = annual interest rate = 4% = 0.04
n = number of times interest is compounded per year = 1 (annually)
t = number of years = 3
Plugging in the values:
Final Balance = $924(1 + 0.04/1)^(1*3)
Final Balance = $924(1.04)^3
Final Balance = $924(1.124864)
Final Balance = $1038.81
Therefore, the final balance for $924 invested at 4% compounded annually for three years will be approximately $1038.81.