if you took $500 to the bank and put it in a savings account that earns 3% interest compounded annually. How much money will you have at the end of 3 years. the most detailed answer with equation drwn out will get my points. please only intelligent answers.
2006-09-23 13:26:58 · 6 answers · asked by jesika 1 in Business & Finance ➔ Investing
$500.00 = initial investment
$15.00 = 1st years interest (assuming compounded only anually)
$4.20 = federal taxes on interest gained
$510.80 = balance after taxes
$510.80 = second years investment
$15.32 = 2nd years interest
$4.29 = federal taxes
$521.83 = balance after taxes
$521.83 = third years investment
$15.66 = 3rd years interest
$4.38 = federal taxes
$533.11 = Final balance after interest taxes paid after 3 years
2006-09-23 13:44:42 · answer #1 · answered by sunsetsrbest1 3 · 0⤊ 0⤋
using the financial formula
principal (1 + int rate) ^ number of periods
500 (1 + 3%) ^3
500 (1+.03)^3
546.3635
so you will have 46.36 dollars, so that we can go out for dinner :)
2006-09-23 20:39:00 · answer #2 · answered by jlau_hn 2 · 0⤊ 0⤋
well , there are charts for the compound interest values calculations , but
500*1.03*1.03*1.03 = 546.3635 USD
2006-09-23 20:30:18 · answer #3 · answered by Ayman 3 · 0⤊ 0⤋
All you have to do is search for an amortization calculator.
2006-09-23 20:29:17 · answer #4 · answered by c.arsenault 5 · 0⤊ 0⤋
500*1.03*1.03*1.03=546
2006-09-23 20:34:49 · answer #5 · answered by Anonymous · 0⤊ 0⤋
use an hp12C
2006-09-23 20:27:43 · answer #6 · answered by Alterfemego 7 · 0⤊ 0⤋