Question

Jeff invested $3000 in an account that earns 6.5% interest, compounded annually. How much did Jeff have in the account after 3 years?

Answer 1

$3623.85

Explanation:

To calculate compound interest like this you:
`FV=OV(1+r/100)^n`
FV=Future value which is what the value will be after the interest is calculated, this is what you are looking for, in this case `3623.85`

OV=Original value, the amount of money you started with, in this case `3000`

r=interest rate, in this case its `6.5`

n=years its being compounded annually, in this case `3`

`3000(1+6.5/100)^3 = 3623.848875`
Rounded to nearest cent is `$3623.85`