Question

if i get 560 dollars in my bank account and i earn a 2.5% interest rate every 3 years how much cash will i have in 3 years

Answer 1

The future capital can be represented by the following expression:

$\begin{gathered} FV=I(1+i)^n \\ \text{where,} \\ FV=\text{ future capital or money} \\ I=\text{ initial value} \\ i=\text{ interes rate} \\ n=\text{ number of periods} \end{gathered}$

Substituing in the equation:

$\begin{gathered} FV=560(1+0.025)^1 \\ FV=574 \end{gathered}$

You will have $574 after 3 years.