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What is the maturity value of a 3 year term deposit of 3157.69

dollars at 3.3% compounded annually? how much interest did the
deposit earn?

User Dhrupal
by
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1 Answer

4 votes

Final answer:

The maturity value of the 3-year term deposit is $3,505.34 and the deposit earned $347.65 in interest.

Step-by-step explanation:

To calculate the maturity value of a 3-year term deposit, we can use the formula:

Maturity Value = Principal amount * (1 + Interest rate)^Time period

In this case, the principal amount is $3,157.69, the interest rate is 3.3% (or 0.033), and the time period is 3 years. Plugging in these values into the formula:

Maturity Value = $3,157.69 * (1 + 0.033)^3 = $3,505.34

The maturity value of the deposit is $3,505.34.

To calculate the interest earned, we can subtract the principal amount from the maturity value:

Interest Earned = Maturity Value - Principal amount = $3,505.34 - $3,157.69 = $347.65

The deposit earned $347.65 in interest.

User Behnam Eskandari
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