How much money will you have in 6 months if you invest $1000 at 3% compounded annually?
To calculate the future value of an investment with compound interest, you can use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (initial investment)
r = annual interest rate (decimal)
n = number of times the interest is compounded per year
t = number of years the money is invested for
In this case:
P = $1000
r = 0.03 (3% as a decimal)
n = 1 (compounded annually)
t = 6 months (0.5 years)
A = $1000(1 + 0.03/1)^(1*0.5)
A = $1000(1 + 0.03)^(0.5)
A = $1000(1.03)^0.5
A = $1000(1.015)
A = $1015
Therefore, you will have $1015 in 6 months if you invest $1000 at 3% compounded annually.