Mrs ojo deposits 3000 into the bank which pays interest at 15% compounded yearly. What will be deposited amount in 5 years
To find the deposited amount after 5 years, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = Final amount
P = Principal amount (initial deposit)
r = Annual interest rate (in decimal form)
n = Number of times interest is compounded per year
t = Number of years
In this case:
P = $3000
r = 15% = 0.15
n = 1 (compounded yearly)
t = 5
Plugging in the values:
A = 3000(1 + 0.15/1)^(1*5)
A = 3000(1 + 0.15)^5
A = 3000(1.15)^5
A ≈ $4887.49
Therefore, the deposited amount after 5 years, with interest compounded yearly at 15%, will be approximately $4887.49.