SOLUTION: A man invests $5000 for three years at 10% compounded annually. a) what is the future value? b) how much interest will be earned? thank you for your help

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Question 971666: A man invests $5000 for three years at 10% compounded annually.
a) what is the future value?
b) how much interest will be earned?
thank you for your help
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
A=P%5B1%2B%28r%2Fn%29%5D%5Ent
r=0.1, n=1, t=3
A=5000*{1+.1)^3
A=5000*(1.331)=$6655 (future value)
interest earned is 6655-5000 (start)=$1655