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Vlad1618 [11]
3 years ago
15

amber invested 25000 at 2% for 3 years compound simiannually.Find future value at the end of 3 years?

Mathematics
2 answers:
vfiekz [6]3 years ago
7 0

Use the compound interest formula:

A = P(1+r/n)^(nt). Here, P = $25000, r = 0.02, t = 3 and n = 2.

Then:

A = $25000(1 + 0.02/2)^(3*2)

= $25000(1.01)^6

= $26538.00 (future value at the end of 3 years)

Helen [10]3 years ago
7 0

First you use the compound interest formula which is: A = P(1+r/n)^(nt).

Plug in the number in this case being P = $25000, r = 0.02, t = 3 and n = 2.

A = $25000(1 + 0.02/2)^(3*2)

= $25000(1.01)^6

= $26538.00 (future value at the end of 3 years)

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