$3000 invested at an APR of 5% for 7 years. If interest is compounded annually , what is the amount of money after 7 years?
Please don't post the same question over and over.
!!!!!! Well you keep skipping over my question !!!!!
That is simply not true, scroll down. I have answered simple interest, compound interest, and continuously compounded interest questions from you.
To calculate the amount of money after 7 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount
P is the principal amount (initial investment)
r is the annual interest rate (expressed as a decimal)
n is the number of times interest is compounded per year
t is the number of years
In this case, the principal amount (P) is $3000, the annual interest rate (r) is 5% (or 0.05 as a decimal), the number of times interest is compounded per year (n) is 1 (since it is compounded annually), and the number of years (t) is 7.
Plugging in these values into the formula:
A = 3000(1 + 0.05/1)^(1*7)
Simplifying further:
A = 3000(1.05)^7
Calculating (1.05)^7:
A = 3000(1.402551)
Multiplying 3000 by 1.402551:
A ≈ $4207.65
Therefore, the amount of money after 7 years would be approximately $4207.65 when the interest is compounded annually.