Answer:
$3375 money would the student council have in four years if they invest $3000 at 5% interest compounded yearly.
Step-by-step explanation:
We are given:
Principal Amount = $3000
Interest Rate r = 5% or 0.05
n=1 (compounded yearly)
Years t= 4
We need to find future value (A)
The formula used is: [tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Putting values in formula and finding future value A
[tex]A=P(1+\frac{r}{n})^{nt}\\A=3000(1+\frac{0.05}{1})^{1*4}\\A=3000(1+0.05)^4\\A=3000(1.05)^4\\A=3000(1.215)\\A=3375[/tex]
So, $3375 money would the student council have in four years if they invest $3000 at 5% interest compounded yearly.
