Question

Mario invests £2000 for 3 years at 5% per annum compound interest. Calculate the value of the investment at the end of 3 years.

Answer 1

$2315.25

Explanation:

Given data

Principal= £2000

Time= 3 years

Rate= 5%

The compound interest expression is

A= P(1+r)^t

substitute

A= 2000(1+0.05)^3

A= 2000(1.05)^3

A= 2000*1.157625

A= 2315.25

Hence the Amount is $2315.25