marsha wants to invest $1400 for a period of 3 years. if she can earn 2.8% per annum compond interest, how much will she have at the end?

Question

need help please

Answer 1

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

A = final amount

p = principal = 1400

r = interest rate = 2.8% =  0.028

n = number times compounded per year

t = time in years = 3

 

Note:  We haven't been told how often the interest is compounded:

Annually:  n = 1

Semiannually: n = 2

Quarterly:  n = 3

Monthly: n = 12

 

Assuming the interest is compounded annually we have:

 

A = 1400(1+0.028/1)¹⁽³⁾ = 1400(1.028)³ = $1,520.92

 

Just change the value of n and rework if interest is compounded other than annually.