Andrew M. answered • 07/02/15
Tutor
New to Wyzant
Mathematics - Algebra a Specialty / F.I.T. Grad - B.S. w/Honors
since there is no statement as to how often the interest is compounded, we will assume it is compounded annually - once per year.
Compound interest is given by the formula
A = P(1+r/n)nt
A is the future or final amount
P is original amount invested (Principal)
r is interest rate as a decimal
n is number of times interest is compounded each year
t is the number of years
1500 = P(1+.03/1)1(5)
1500 = P(1.03)5
P = 1500/1.035
P = $1,293.91
Hope this helps.
Andrew M.
You are correct. Apparently I hit a wrong button somewhere on the calculator. Thanks.
Report
07/30/15
Stephanie P.
07/30/15