SOLUTION: Juanita invests $3,000, at 5% interest, compounded annually for 3 years. Manually calculate the compound interest for this investment. I understand every problem but the ones li

Question 920127: Juanita invests $3,000, at 5% interest, compounded annually for 3 years. Manually calculate the compound interest for this investment.
I understand every problem but the ones like these, Please can you help step me through the process to find the answer? I either skipping a step or something... I can't figure it out
Thanks
Answer by rothauserc(4718) (Show Source): You can put this solution on YOUR website!
the formula for compound interest is,
A = P*(1 + r/n)^nt where A is amount, P is principal, r is rate, n is number of times the rate is compounded per year, t is number of years
A = 3000*(1 + .05/1)^(1*3) = 3472.875 approx $3472.88
compound interest is 3472.88 - 3000.00 = $472.88

RELATED QUESTIONS
Brian invests $15,500, at 8% interest, compounded semiannually for 2 years. Manually... (answered by Boreal)

Manually calculate the compound interest on an investment of $12,500 at 7.5% interest,... (answered by lwsshak3)

Refer to Narrative 11-1. Calculate the compound interest on an investment of $45,000 at... (answered by Theo)

Brianna invests $4,000, at 8% interest, compounded quarterly for 11 years. Calculate the... (answered by Boreal)

Nate invests $3000 at a 6% interest rate for 3 years. If interest is compounded annually, (answered by rfer)

Manually calculate the compound interest on an investment of $7,500 at 6% interest,... (answered by Alan3354)

Calculate the payment for a $10,000 car loan at 7% interest compounded annually for 5... (answered by checkley79)

A woman invests $3,000 in a mutual fund for which interest is compounded annually at a... (answered by Solver92311)

Suppose that you invest $7,000 at 6% interest, compound quarterly, for 5 years. use Table (answered by ewatrrr,Theo,MathTherapy)