Question

A=P(1+(r/n))^(nt)
How do you solve for A, if P=3,000 and rate=.079,
ANNUALLY???

Answer 1

Is the interest rate compounded annually?

Answer 2

yes

Answer 3

Then n = 1 because n represents the number of times the interest is compounded each year. Plug into the formula, P = 3000, r = 0.079, n = 1 and calculate A.

Answer 4

ok thank!

Answer 5

Calculate A after how many years? If it is one year, then t = 1.

Answer 6

it doesn't say, it just says to "Calculate the value of an investment of $3,000 if it earns 7.9% interest compound:
a. Annually
b. Daily