Question

Find the compound interest on 6000 for 3 years at 5% per annum.
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Answer 1

Explanation:

Use compounding interest formula:

PV (1+i)^n then subtract PV

( PV = present value= 6000 i = decimal interest per period = .05 n = periods = 3 )

$ 6000 (1 + .05)^3 - $ 6000 = $ 945.75 interest