Answer:
$1331 compounded annually after three years
Step-by-step explanation:
Given the following question:
1000 dollars invested (princpal)....
You invest that 1000 dollars for three years (time)....
Assuming it's compounded annually we need to substitute the values into the formula to calculate compound interest.
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
[tex]P=1000[/tex]
[tex]\frac{r}{n} =\frac{10}{100} =10\div100=0.1[/tex]
[tex]nt=(1)(3)[/tex]
[tex]A=1000(1+0.1)^{(1)(3)}[/tex]
[tex]1\times3=3[/tex]
[tex]A=1000(1+0.1)^{3}[/tex]
[tex]1+0.1=1.1[/tex]
[tex]1.1^3=1.1\times1.1\times1.1=1.331[/tex]
[tex]A=1000\times1.331[/tex]
[tex]1000\times1.331=1331[/tex]
[tex]=1331[/tex]
Which means after a intital investment of 1000 dollars you will have "1331 dollars" after three years compounded annually.
Hope this helps.
