What sum will amount to k2975 in 3 years at 12 1/4% p.a. compound interest?
To calculate the sum that will amount to $2975 in 3 years at 12 1/4% p.a. compound interest, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the amount after n years ($2975 in this case)
P = the principal amount (the sum we are looking for)
r = annual interest rate in decimal form (12 1/4% = 12.25% = 0.1225)
n = number of times interest is compounded per year (assuming it is compounded annually)
t = number of years (3 years in this case)
We need to rearrange the formula to solve for P:
P = A / (1 + r/n)^(nt)
Now plug in the values:
P = $2975 / (1 + 0.1225/1)^(1*3)
P = $2975 / (1.1225)^3
P = $2975 / 1.383417578
P ≈ $2150.86
Therefore, the sum that will amount to $2975 in 3 years at 12 1/4% p.a. compound interest is approximately $2150.86.
Use the formula A = PR^(n).
Where:
A is the amount accumulated over n years.
P is the principal.
R = 1 + (12 1/4)/100
n is the number of terms or years
Sure, we can use the formula A = PR^(n) to calculate the sum that will amount to $2975 in 3 years at 12 1/4% p.a. compound interest.
Given:
A = $2975
R = 1 + 12.25/100 = 1.1225
n = 3 years
We need to rearrange the formula to solve for P:
P = A / R^n
Now plug in the values:
P = $2975 / 1.1225^3
P = $2975 / 1.383417578
P ≈ $2150.86
Therefore, the sum that will amount to $2975 in 3 years at 12 1/4% p.a. compound interest is approximately $2150.86, which is the same result as calculated earlier using the compound interest formula.