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You have $1000 invested for 3 years and get 10% interest.

User Onkelborg
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1 Answer

7 votes

Answer:

$1331 compounded annually after three years

Explanation:

Given the following question:

1000 dollars invested (princpal)....
You invest that 1000 dollars for three years (time)....

Assuming it's compounded annually we need to substitute the values into the formula to calculate compound interest.


A=P(1+(r)/(n) )^(nt)

P=1000

(r)/(n) =(10)/(100) =10/100=0.1

nt=(1)(3)

A=1000(1+0.1)^((1)(3))

1*3=3

A=1000(1+0.1)^(3)

1+0.1=1.1

1.1^3=1.1*1.1*1.1=1.331

A=1000*1.331

1000*1.331=1331

=1331

Which means after a intital investment of 1000 dollars you will have "1331 dollars" after three years compounded annually.

Hope this helps.

User Wchung
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