Jeff invested $3000 in an account that earns 6.5% interest, compounded annually. How much did Jeff have in the account after 3 years?

1 Answer
Crater M.
Feb 21, 2018

$3623.85

Explanation:

To calculate compound interest like this you:
#FV=OV(1+r/100)^n#
FV=Future value which is what the value will be after the interest is calculated, this is what you are looking for, in this case #3623.85#

OV=Original value, the amount of money you started with, in this case #3000#

r=interest rate, in this case its #6.5#

n=years its being compounded annually, in this case #3#

#3000(1+6.5/100)^3 = 3623.848875#
Rounded to nearest cent is #$3623.85#

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