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Feliz [49]
3 years ago
11

What is the compund interest on 5,000 over 3 years at 5% interest

Mathematics
2 answers:
Katena32 [7]3 years ago
8 0

Answer:

788.13  to the nearest hundredth.

Step-by-step explanation:

Let A be the total amount in the account after 3 years.

The formula is A = P(1 + x/100)^t .

Here P = 5000, x = 5 %  and the time t = 3. years.  

Amount after 3 years = 5000(1 + 5/100)^3

=  5788.13

So the Interest is 5788.13 - 5000

= 788.13.

Igoryamba3 years ago
8 0

Answer:

Compound interest = 788.125

Step-by-step explanation:

Points to remember

<u>Compound interest</u>

A = P[1 + R/100]^N

Were A - Amount

P - Principle

R - Rate of interest

N - Number of years

<u>To find the compound interest</u>

Here P - 5,000

R = 5%

N - 3 years

A = P[1 + R/100]^N

 = 5000[1 + 5/100]^3

 = 5000[1 + 0.05]^3

 = 5788.125

Compound interest  = A - P

 = 5788.125 - 5000

 = 788.125

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