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

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

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Answer 1 · 2018-02-21T08:44:02

$3623.85

Explanation:

To calculate compound interest like this you:
$F V = O V {(1 + \frac{r}{100})}^{n}$ $FV=OV(1+r/100)^n$
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 $3623.85$ $3623.85$

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

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

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

$3000 {(1 + \frac{6.5}{100})}^{3} = 3623.848875$ $3000(1+6.5/100)^3 = 3623.848875$
Rounded to nearest cent is $$ 3623.85$ $$3623.85$

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

1 Answer

Explanation:

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