Find the amount that results from the given investment

Question

$600 invested at 3% compounded daily after a period of 3 years. After 3 years, the investment results in $__?

Answer 1

For regular compound interest the formula is:

A = P(1 + r/n)^nt

 

A = future or final amount

P = principal investment = $600

r = interest rate as a decimal = .03

n = number of times interest is compounded per year = 365

t = time in years = 3

 

A = 600(1 + .03/365)³⁶⁵⁽³⁾

 

A = $656.50

 

Hope this helps.  Good luck.