amber invested 25000 at 2% for 3 years compound simiannually. Find future value at the end of 3 years?

Question

Mathematics

Randall Huffman

4 April, 11:43

amber invested 25000 at 2% for 3 years compound simiannually. Find future value at the end of 3 years?

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Answers (2)

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Kristopher Morales · Answer 1

Use the compound interest formula:

A = P (1+r/n) ^ (nt). Here, P = $25000, r = 0.02, t = 3 and n = 2.

Then:

A = $25000 (1 + 0.02/2) ^ (3*2)

= $25000 (1.01) ^6

= $26538.00 (future value at the end of 3 years)

Michael Stephens · Answer 2

First you use the compound interest formula which is: A = P (1+r/n) ^ (nt).

Plug in the number in this case being P = $25000, r = 0.02, t = 3 and n = 2.

A = $25000 (1 + 0.02/2) ^ (3*2)

= $25000 (1.01) ^6

= $26538.00 (future value at the end of 3 years)