SOLUTION: A 5000 is invested for 3 years at 10 percent,compounded annually.Calculate the amount to be received after 3 years? Also calculate the amount of interest that will be earned?

Question 858156: A 5000 is invested for 3 years at 10 percent,compounded annually.Calculate the amount to be received after 3 years? Also calculate the amount of interest that will be earned?
Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
A 5000 is invested for 3 years at 10 percent,compounded annually.Calculate the amount to be received after 3 years? Also calculate the amount of interest that will be earned?
***
compound interest formula: A=P(1+i)^n, p=initial amount invested, i=interest rate per period, A=amount after n periods.
For given problem:
P=5000
i=10%
n=3
..
A=5000(1+.10)^3=5000(1.1)^3=6655
6655-5000=1655
amount to be received after 3 years: 6655
amount of interest that will be earned:1655

RELATED QUESTIONS
5-1A. (Compound interest) To what amount will the following investments accumulate? a.... (answered by solver91311)

To what amount will the following investments accumulate? 1. $5,000 invested for 10... (answered by solver91311)

Need help with finance. Please please help. Thank you so much. To what amount will the (answered by rfer)

Compound interest) To what amount will the following investments accumulate? a. $5,000... (answered by rfer)

5000 invested for 9 years at 10% compounded annually will accumulate... (answered by Cromlix)

If 5000 dollars is invested in a bank account at an interest rate of 4 per cent per year, (answered by stanbon)

What amount is accumulated after 3 years of P6,500 invested at a rate of 12% per year... (answered by Theo)

what principal will amount to $3000 if invested at 3% interest compounded semi annually... (answered by josgarithmetic,MathTherapy)

Determine, to the nearest dollar, the amount of money accumulated after 3 years if $2000... (answered by oscargut)