Question

How do you use the formula to solve these problems: initial deposit of $500, at 8% for 3 years?

Answer 1

Amount at the end of 3rd-year `=$.620`

Explanation:

Given -

Initial Deposit `P=$.500`
Rate of Interest `I=8%`
Period `N= 3`years

Amount at the end of 3rd year =?

Amount at the end of 3rd year `=P + (P.I.N)`

`=500 + (500 xx 8/100 xx3)=500 +120=620`

Amount at the end of 3rd-year `=$.620`