$3000 is invested at an APR of 5% for 7 years. If the interest is compounded annually, what is the amount of money after 7 years?

S u m = $3000 ⋅ ( 1 + 5% ) 7 = $3000 ⋅ ( 1.05 ) 7 ≈ $4221.30

Answered by kate200468 | 2024-06-10

With annual compounding, the value of the investment after 7 years is
Value = $3,000 [ 1 + 0.05 ] to the 7th power .
Value = $3,000 [ 1.4071 ] = $4,221.30

Answered by AL2006 | 2024-06-10

After investing $3000 at a 5% APR compounded annually for 7 years, the final amount will be approximately $4221.30. This is calculated using the compound interest formula. The investment grows due to the effects of compounding interest over time.
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Answered by kate200468 | 2024-10-30