Me again......with maths?

Question

A man deposited $8500 into a bank that pays 3.125% compound interest for 3 years. Calculate the amount he will receive at the end of the term, giving your answer correct to the nearest 50 cents.

Answer 1

pls talk to me . i'll explain it to you

Answer 2

To figure this you need to know how often the interest is compounded. For example, if it is compounded four times a year the result would be different than if it is compounded 12 times a year or 365 times a year.
When you know how many times a year it is compounded, you use that value for n in the formula
final amount = initial amount x (1 + interest rate / n)^(n x time)
In this case, time is 3 years, interest rate is .03125, and initial amount is 8500. So, knowing n, you could plug all these numbers into the above formula and find the final amount. But without n, you lack sufficient information to find an answer.
For more info, also a handy online calculator see
http://www.moneychimp.com/articles/finworks/fmfutval.htm
see also...
http://en.wikipedia.org/wiki/Compound_interest
That link is a little technical, but it has formulas for all sorts of related quantities, such as, how much to invest to achieve a certain future value, or what happens when there is continuous compounding, the famous P = e^rt formula.
Check it out -- good luck!

Answer 3

It depends on compounding.
Simple interest: (1+3*0.03125)*8500=$9297.00

Compound annually: 8500*(1+0.03125)³=$9322.00

Compound continuously: 8500*e^(0.03125*3)=$9335.50

Answer 4

Here is the formula:

I = P (1 + r/n)^(nt)

I = final amount after t years
P = initial amount
r = rate
n = compounding (annually, quarterly....)
t = time in years

Answer 5

We need to know how the interest is compounded, annually, quarterly, monthly, weekly, daily, or continuously.