Question

If $35,000 is invested at 4.2% annual interest for 3 years, how much will there be if compounded annually.

Answer 1

C = initial capital

CA = acquired capital

t= interest rate

n = number of periods

C = 35,000

t =per period (expressed in decimals, 4.2% = 0.042),

n= 3 years

Capital acquired = 35,000(1,042)^3=≈39597.81308=39597.8$