Find the sum to which 100000 will amount in 3 years at 6% annum compound interest
To find the sum to which $100,000 will amount in 3 years at 6% compound interest, we 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 amount (the initial deposit or loan amount)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or the loan is repaid for
In this case, P = $100,000, r = 6% = 0.06, n = 1 (compounded annually), and t = 3.
Plugging these values into the formula:
A = 100,000(1+0.06/1)^(1*3)
A = 100,000(1.06)^3
A ≈ 119,101.44
Therefore, $100,000 will amount to approximately $119,101.44 in 3 years at 6% compound interest.