Question

Liam invests $5,000 in an account that pays 2.5% compound interest annually. He uses the expression P(1+r)t to find the total value of the account after t years. What will be the total value of the account after 3 years?

Answer 1

Total = Principal × ( 1 + Rate )^years

Total = 5,000 * (1.025)^3
Total = 5,000 * 1.076890625
Total = 5,384.45

Source:
http://www.1728.org/compint.htm