24.5k views
2 votes
If you save $3000 at an interest rate of 14% per year how much will you have at the end of six years the Interest should be compounded

1 Answer

2 votes

Final answer:

To calculate the amount you will have at the end of six years with compound interest, use the formula A = P(1 + r/n)^(nt). Substituting the given values, the amount will be approximately $5,920.31.

Step-by-step explanation:

To calculate the amount you will have at the end of six years with compound interest, you can use the formula:

A = P(1 + r/n)^(nt)

Where:

  • A is the amount of money you will have at the end of the six years
  • P is the initial amount of money you saved, which is $3000
  • r is the interest rate per period, which is 14% or 0.14 as a decimal
  • n is the number of times the interest is compounded per year, which is 1 in this case
  • t is the number of years the money is invested for, which is 6 in this case

Substituting these values into the formula, we get:

A = 3000(1 + 0.14/1)^(1*6)

A = 3000(1 + 0.14)^6

A = 3000(1.14)^6

A = 3000(1.973438)

A = $5,920.31

Therefore, you will have approximately $5,920.31 at the end of six years with a compounded interest rate of 14% per year.

User Kadine
by
7.5k points