Ask Question
BusinessBusiness
8 March, 07:32

Your friend deposits $3000 in the bank for his graduation ceremony three years from now. Assume that the interest rate is 3% and compounded annually. What will be the amount available at the time of his graduation ceremony?

+4
Answers (1)
  1. 8 March, 07:48
    0
    Answer: $3,278.18

    Explanation:

    This is a matter of Compound interest as you are to find how much your friend would have after 3 years assuming the money was being compounded every year.

    The formula for compound interest is,

    FV = PV (1 + r) ^ n

    FV is the value in future after the compounding

    PV is the Present Value

    r is interest rate

    n is the no. of periods of compounding.

    FV = 3,000 (1 + 0.03) ^ 3

    FV = 3278.181

    FV = $3,278.18

    The amount available at the time of his graduation ceremony will be $3,278.18
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Your friend deposits $3000 in the bank for his graduation ceremony three years from now. Assume that the interest rate is 3% and compounded ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
On January 1, Hillcrest Co. acquired a 40% interest in Preston, Inc. with the excess of purchase price over book value solely attributable to equipment with a ten-year life and undervaluation by $250,000.
Answers (1)
Suppose 52% of students support the idea of paying student government officers. A random sample of 400 students is taken.
Answers (1)
Preston Company manufactures a product with a unit variable cost of $140 and a unit sales price of $264. Fixed manufacturing costs were $720,000 when 10,000 units were produced and sold.
Answers (1)
A house is closed on October 15. The annual insurance payment is $578 for the fiscal year of July 1 to June 30. The buyers will assume the seller's policy. Since the policy has been paid, how much does the buyer owe the seller at closing? 1. 167.
Answers (1)
The following information on selected transactions for the year has been provided by Baker Company: Proceeds from issuing bonds 500,000 Purchases of treasury stock 150,000 Loans made to customers (notes receivable) 350,000 Dividends paid to
Answers (1)
New Questions in Business
Sharp Focus Cameras is facing intense competitive pressure. Top marketing managers are looking for ways to cut costs. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution.
Answers (1)
Older adults who participated in 20 one-hour video game training sessions with the program lumosity showed reduction in their:
Answers (1)
The total of tools, equipment, machinery, and buildings used to produce goods and services is called supply. True or False
Answers (1)
What percentage of federal revenues is made up of corporate taxes
Answers (1)
F Rudy offers Oscar $200 for his laptop valued at $600 and Oscar agrees, a court will probably
Answers (1)
Home » Business » Your friend deposits $3000 in the bank for his graduation ceremony three years from now. Assume that the interest rate is 3% and compounded annually. What will be the amount available at the time of his graduation ceremony?
Sign Up Forgot Password?