The formula for compound interest is A = P(1 + r/n)^(nt), where:
A = the future value of the investment
P = the principal amount (initial investment)
r = annual interest rate (in decimal form)
n = number of times the interest is compounded per year
t = number of years the money is invested for
In this case, P = 9000, r = 0.07, n = 1 (since the interest is compounded annually), and t = 3.
A = 9000(1 + 0.07/1)^(1*3)
A = 9000(1.07)^3
A = 9000(1.225043)
A = 11025.39
Therefore, the investment of $9000 at 7% compound interest for 3 years will grow to approximately $11025.39.
The 9000 invested at 7%p.a. Compound interest for 3 years
1 answer
1 answer