If an amount P is to be invested at an annual interest rate of 3.5 percent, compounded annually what should be the value of P so that the value of the investment is $1,000 at the end of 3 years?

Question

Vocaloid · Answer

For annual compounding

A = P(1 + r)^t
Where A is the final amount (1000)
r is the interest rate as a decimal (0.035)
t is time (3 yrs)

Plug in the appropriate quantities and solve for P

justheretolearnmathh · Answer

Th

@vocaloid wrote:

For annual compounding A = P(1 + r)^t Where A is the final amount (1000) r is the interest rate as a decimal (0.035) t is time (3 yrs) Plug in the appropriate quantities and solve for P

Thanks so much!