future annunity plus total interest earned.

timer Asked: Jul 15th, 2014
account_balance_wallet $5

Question Description

Using the simple interest formula find the future value of an ordinary annunity of  $3,500 paid annually after 3 yrs at 3.6% annunal interest. find the total interest earned.

I know what PRT is in the formula of I=prt, stuck from there.

Tutor Answer

School: UCLA

This is pretty interesting.

P=$3500 ,R=3.6% and T=3 therefore, future value=$3500*(1+0.036*3)=$3878

The total interest earned = (future value-principal) =$(3878-3500)= $378

flag Report DMCA

Thanks, good work

Similar Questions
Hot Questions
Related Tags
Study Guides

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors