The principal represents an amount of money deposited in a savings account subject tocompound interest at the given rate.A. Find how much money there will be in the account after the given number of years.B. Find the interest earned.Click the icon to view some finance formulas.A. The amount of money in the account after 3 years is $.(Round to the nearest hundredth as needed.)B. The amount of interest earned is $(Round to the nearest hundredth as needed.)Principal$6000Rate5%CompoundedannuallyTime3 years

Compound = Annually = 1 Principal Amount = p = $6000 Interest rate = r = 5% Time = t = 3 years

Answered: The principal represents an amount of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. A. Find how much money there will be in the account after the given number of years. B. Find the interest earned. Principal $6000 Rate 5% Compounded annually Time 3 years