Question

Simon borrowed $1,000 for 3 years at 5% compound interest rate. How much did he owe after 3 years? Enter your numeric answer, (without the $ sign), to the nearest cent below

Answer 1

Answer:

Total amount after 3 year = 1,157.625

Step-by-step explanation:

Given:

Amount deposit P = $1,000

Number of year n = 3 year

Interest rate r = 5% = 0.05

Find:

Total amount after 3 year

Computation:

Amount = P[1+r]ⁿ

Total amount after 3 year = 1,000[1+0.05]³

Total amount after 3 year = 1,000[1.05]³

Total amount after 3 year = 1,157.625