Question

find how much money will be in the account given each principal, compound interest rate, and amount of time. also, determined the amount of Interest assume interest is compounded yearly. p=$7000, r=6%, t=3 years

Answer 1

Apply the compound interest formula:

A = P (1+r)^t

Replacing:

A = 7,000 (1+ 6/100) ^3

A = 7,000 ( 1.06)^3

A = $8,337.11

Amount of interest:

8,337.11-7000 = $1,337.11