Question

Helia invested 4000 AED for 3 years with a compound interest rate of 1.5%, Calculate the worth of her investment at the end of this time period. ( Show each step of your calculation)

Answer 1

4180 AED

Explanation:

Given data

Principal= 4000

Time= 3 years

Rate= 1.5%

The compound interest expression is given as

A= P(1+r)^t

substitute

A=4000(1+0.015)^3

A= 4000(1.015)^3

A= 4000*1.045

A= 4180

Hence the worth will be 4180 AED