Question

Determine the total value of a $500 investment earning 3% compound interest over 7 years.


plz help

Answer 1

Could I help you?

Answer 2

yes plz

Answer 3

Thank you.
Pleasure is mine!

Answer 4

:)

Answer 5

Are you familiar with that?

Answer 6

yes, I am

Answer 7

Great!
What is the initial amount of the money being invested?

Answer 8

In the question it is $500 but i am unsure if i would multiply that by 7 for 7 years

Answer 9

Step by step.

"a \(\color{red}{$500}\) investment" means the owner of the account has deposited this as the \(\color{red}{initial }\) amount of money in his account to start his investment...
>>agree with me???

Answer 10

Yes

Answer 11

Brilliant!

Now...what is the rate of (compound) interest of the account?
in other words, the money will increases with how much percent\ratio?

Answer 12

3% annually (every year) for 7 years

Answer 13

Could you give me just 5 min, please?

Answer 14

yeah, sure

Answer 15

I am back!

Answer 16

"3% annually (every year)" in decimal would be ....?

Answer 17

Let me know when you are back!