Example Solving Compound Interest Word Problems : Find Future Value given Present Value, Interest rate, Time Period and Compounding.
See Other Compound Interest Word Problem Examples solved by the Algebra Word Problem Solver.| What will be the value of the principle investment of $1000 invested at 6% for 3 years if interest is compounded monthly? |
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Let A = Final Amount Let P = Principle Let r = Rate Let t = Time Let n = Interest periods per year Given: P = $1000 Given: r = 6% Given: n = 12 Given: T = 3 YEARS
nt
A = P(1+r/n)
12*3
A = 1000(1+0.06/12)
36
A = 1,000(1+0.005)
A = 1000 * 1.19668A = $1,196.68 A = $1,196.68 |