$1280 at 13% compounded annually for 3 years
Find each balance.
Use the formula B= p(1+r)n
well if 13% is the rate
$1280 is the price
n is the number of years
so 1280(1+.13)3
1280 x 1.13 x 3
4339.2 i think
well this is a pretty tough question, and i thought i was doing hard stuff in GEM
thanks Ryan!
To find the balance each year, we can use the formula for compound interest:
B = P(1 + r)^n
where:
B = Balance
P = Principal amount (initial investment)
r = Annual interest rate (expressed as a decimal)
n = Number of years
In this case, the principal amount (P) is $1280, the interest rate (r) is 13% or 0.13 (expressed as a decimal), and the number of years (n) is 3.
Let's calculate the balance for each year:
Year 1:
B1 = 1280(1 + 0.13)^1
B1 = 1280(1.13)
B1 ≈ $1,449.40
Year 2:
B2 = 1280(1 + 0.13)^2
B2 = 1280(1.13)^2
B2 ≈ $1,638.23
Year 3:
B3 = 1280(1 + 0.13)^3
B3 = 1280(1.13)^3
B3 ≈ $1,852.72
Therefore, the balance at the end of each year would be approximately:
Year 1: $1,449.40
Year 2: $1,638.23
Year 3: $1,852.72