3300 principal earning 4% compounded annually after three years
To calculate the amount of money earned after three years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment/loan amount
r = the annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years
In this case, the principal (P) is $3300, the annual interest rate (r) is 4% (or 0.04 as a decimal), n = 1 (since interest is compounded annually), and t = 3.
Substituting these values into the formula, we get:
A = 3300(1 + 0.04/1)^(1*3)
A = 3300(1 + 0.04)^3
A = 3300(1.04)^3
A = 3300(1.124864)
A = $3704.84
Therefore, after three years, the principal of $3300 will earn $3704.84.
To calculate the amount earned on a principal of $3300 compounded annually at a rate of 4% over three years, you can use the formula for compound interest:
A = P (1 + r/n)^(nt)
Where:
A = the total amount (including principal and interest)
P = principal amount ($3300 in this case)
r = annual interest rate (4% in this case)
n = number of times the interest is compounded per year (assuming once annually in this case)
t = number of years (3 years in this case)
Plugging in the values, we have:
A = 3300 (1 + 0.04/1)^(1*3)
= 3300 (1 + 0.04)^3
= 3300 (1.04)^3
= 3300 (1.124864)
≈ $3704.42
Therefore, after three years, the total amount (including principal and interest) would be approximately $3704.42.
To calculate the future value of $3300 compounded annually at a rate of 4% over three years, you can use the formula for compound interest:
Future Value = Principal * (1 + Interest Rate / Number of Compounding Periods)^(Number of Compounding Periods * Number of Years)
In this case, the principal is $3300, the interest rate is 4% (or 0.04 as a decimal), and the number of compounding periods per year is 1 (since it is compounded annually). The number of years is 3.
Plugging these values into the formula, we get:
Future Value = 3300 * (1 + 0.04 / 1)^(1 * 3)
= 3300 * (1 + 0.04)^3
= 3300 * (1.04)^3
≈ 3300 * 1.12486
≈ $3704.62
Therefore, the future value of a $3300 principal earning 4% compounded annually after three years is approximately $3704.62.