Question

The student council made a pront of $3,000 on a car wash. If they invest the money at 5% interest

compounded yearly, how much money would they have in four years?

Answer 1

$3375 money would the student council have in four years if they invest $3000 at 5% interest compounded yearly.

Explanation:

We are given:

Principal Amount = $3000

Interest Rate r = 5% or 0.05

n=1 (compounded yearly)

Years t= 4

We need to find future value (A)

The formula used is:
`A=P(1+(r)/(n))^(nt)`

Putting values in formula and finding future value A

`A=P(1+(r)/(n))^(nt)\\A=3000(1+(0.05)/(1))^(1*4)\\A=3000(1+0.05)^4\\A=3000(1.05)^4\\A=3000(1.215)\\A=3375`

So, $3375 money would the student council have in four years if they invest $3000 at 5% interest compounded yearly.