Question

find how much money will be in the account given each principal, compound interest rate, and amount of time. also, determined the amount of Interest assume interest is compounded yearly.P=$14000, r=5%, t=3 years

Answer 1

We will is the next formula

$A=P(1+r)^t$

where

A=final amount

P=principal amount

r= interest rate

t=number of year invested

we have

P=14000

r=5%

t=3 years

we need to substitute the values in the formula

$\begin{gathered} A=1400(1+0.05)^3 \\ A=16206.75 \end{gathered}$

In the account after 3 years will be $16206.75