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vovangra [49]
3 years ago
11

Ryan invests in an account that pays 1.25% 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 if he invested $7,000?
Mathematics
1 answer:
arlik [135]3 years ago
7 0

Answer:the total value of the account after 3 years is $7266

Step-by-step explanation:

Initial amount that Ryan invested into account is $500 This means that the principal is P, so

P = 7000

It was compounded annually. This means that it was compounded once in a year. So

n = 1

The rate at which the principal was compounded is 1.25%. So

r = 1.25/100 = 0.0125

It was compounded for 3 years. So

n = =3

The formula for compound interest is

A = P(1+r/n)^nt

A = total amount in the account at the end of t years. Therefore

A = 7000 (1+0.0125/1)^1×3

A = 7000(1.0125 )^3= $7266

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