Question

Compound $35.000 is invested at 5% compound interest. What is the interest at the end of three years?​

Answer 1

A = $40,516.88

Explanation:

Assuming that interest is compounded annually:

The AMOUNT will be A = P(1 + r)^2, which here is

A = $35,000(1 + 0.05)^3, or

A = $40,516.88

Answer 2

$40,516.86

Explanation:

start by taking 35,000 and multiplying it by 0.05 to get 5% of the number. then add that number (1,750) to the original 35,000 and you should get 36,750. this would be the first year. Then multiply 36,750 by 0.05 again and add that number (1837.5) to the original 36,750 and you should get 38,587.5. Finally multiply that by 0.05 and add that number (1,929.375) to the original 38,587.5 and you should get 40516.875. Round to the hundredths since it is money.