What is the total amount that First Consumer Bank will receive after lending Jane $7,000 for three years at an interest rate of

Question

kumpel [21]

2 years ago

6

What is the total amount that First Consumer Bank will receive after lending Jane $7,000 for three years at an interest rate of

5 percent, compounded annually?

Mathematics

1 answer:

nlexa [21] · Answer 1 · 2022-07-30T22:11:55+03:00

In 3 years, you will have $8,103.38

Formula:

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

Where:

A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for