Question

A starting principal of $3,000 is invested at 7% compounded annually for 6 years. The compound amount (or future value) is: $_____

Answer 1

The future value is $4502.19.

Explanation:

Given

Principle amount A=$3000

Interest=7%

Time n=6 yr

We need to find future value(P)

We know that for compound Interest, Future value given as

`P=A\left(1+(r)/(100)\right)^n`

Now by putting the values

`P=3000\left(1+(7)/(100)\right)^6`

P=$4502.19

So the future value is $4502.19.