Question

Using the compound interest formula, calculate the total amount at the end of the stated period.

$5000 at 8% p.a for 3 years, compounded annually.

Answer 1

`\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \qquad \begin{cases} A=\textit{compounded amount}\\ P=\textit{original amount deposited}\to &\$5000\\ r=rate\to 8\%\to (8)/(100)\to &0.08\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, meaning once} \end{array}\to &1\\ t=years\to &3 \end{cases}`