Answer:
788.13 to the nearest hundredth.
Step-by-step explanation:
Let A be the total amount in the account after 3 years.
The formula is A = P(1 + x/100)^t .
Here P = 5000, x = 5 % and the time t = 3. years.
Amount after 3 years = 5000(1 + 5/100)^3
= 5788.13
So the Interest is 5788.13 - 5000
= 788.13.
Answer:
Compound interest = 788.125
Step-by-step explanation:
Points to remember
Compound interest
A = P[1 + R/100]^N
Were A - Amount
P - Principle
R - Rate of interest
N - Number of years
To find the compound interest
Here P - 5,000
R = 5%
N - 3 years
A = P[1 + R/100]^N
= 5000[1 + 5/100]^3
= 5000[1 + 0.05]^3
= 5788.125
Compound interest = A - P
= 5788.125 - 5000
= 788.125
