Question

You have $1,500 to invest today at 7% interest compounded annually. How much will you have accumulated in the account at the end of the following number of years? In three years; In five years In seven years

Answer 1

=> ANSWER ::

=> Formula For Yearly Compounding Interest ::

C = P (1 + R/100)^n

C = Counding Interest (P+I)

P = Principal

R = Interest Rate

n = Year

^{=> Compounding Interest For 3 Year ::}

^{P = $1500, R = 7%, n = 3 Year}

^{C = $1500 ( 1 + 0.07 )^3}

^{= $1500 (1.07)^3}

^{= $1500 * 1.2250}

^{= $1837.56}

^{=> Compounding interest For 5 Year ::}

  ^{P = $1500, R = 7%, n = 5 Year}

^{C = $1500 ( 1+0.07)^5}

^{= $1500 ( 1.07)^5}

^{= $1500 * 1.4025}

^{= $2103.83}

^{=> Compounding Interest For 7 Year ::}

  ^{P = $1500, R = 7%, n = 7 Year}

^{C = $1500 (1 + 0.07 )^7}

^{= $1500 ( 1.07)^7}

^{= $1500 * 1.6057}

^{= $ 2408.67}

^{=> So, Money Accumulated In The Account At The End Of Following Years ::}

^{* At The End Of Three Year = $1837.56}

^{* At The End Of Five Year = $2103.83}

^{* At The End Of Seven Year = $2408.67}