Posted by Sawa on Saturday, May 8, 2010 at 5:42pm.
The compound interest formula is
Amount = P(1+r)n
where
P=principal,
r=rate of interest per period (year in this case). 5% per annum is written as 0.05
n=number of periods money is deposited.
For example,
$3000 deposited at 5% per annum for 2 years will yield, when compounded yearly:
Amount=3000*(1+0.05)2
=$3307.50
For 3000 invested at 3% interest compounded yearly for 4 years will yield an amount less than $3400 and in which the amount after the decimal point is $33--.53.
Principal is $5,000, rate if interest is 6.5%, and time to repayment is 3 years. Compute the compound interest
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