Question

jeff invested 3000 in an account that earn 6.5% interest compounded annually. the formula for compound is A(t)=p(1+i)t. how much did jeff have in the account after 3 years

Answer 1

Jeff had in the account 3,623.85 after 3 years

Explanation:

Investment: p=3,000

Interest: i=6.5%=6.5/100→i=0.065

Time (in years): t=3

A(3)=?

A(t)=p(1+i)^t

t=3→A(3)=p(1+i)^3

Replacing the given values:

A(3)=3,000 (1+0.065)^3

A(3)=3,000 (1.065)^3

A(3)=3,000 (1.207949625)

A(3)=3,623.848875

Rounding to the nearest hundredth:

A(3)=3,623.85