What is the solution to the following equation?
1 answer:
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It will be worth $885.51 in 3 years
Step-by-step explanation:
The formula for compound interest, including principal sum is:
, where:
- A is the future value of the investment/loan, including interest
- P is the principal investment amount
- r is the annual interest rate (decimal)
- n is the number of times that interest is compounded per unit t
- t is the time the money is invested or borrowed for
∵ Phineas puts $800 into a certificate of deposit
∴ P = 800
∵ The rate of deposit is 3.39%
∴ r = 3.39% = 3.39 ÷ 100 = 0.0339
∵ The money is compounded monthly
∴ n = 12
∵ t = 3
- Substitute these values in the formula above
∴
∴
∴ A = 885.51407
- Round it to the nearest cent ⇒ hundredths place
∴ A = 885.51
It will be worth $885.51 in 3 years
Learn more:
You can learn more about the interest in brainly.com/question/3614284
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