Compound Interest Easy ~Help PLZ~

Jameel06

New member
Joined
Feb 13, 2021
Messages
1
I have just started doing compound interest, and whilst doing a practice test I got stuck on this question.

How much money must you deposit at 7% per annum compound interest, compounding yearly,
If you require $10 000 in 3 years’ time? Give your answer to the nearest dollar

Much appreciated if anyone could help :)
 

jonah2.0

Full Member
Joined
Apr 29, 2014
Messages
405
Beer soaked query follows.
I have just started doing compound interest, and whilst doing a practice test I got stuck on this question.

How much money must you deposit at 7% per annum compound interest, compounding yearly,
If you require $10 000 in 3 years’ time? Give your answer to the nearest dollar

Much appreciated if anyone could help :)
Can you tell us the the compound interest formula?
 

Olim

New member
Joined
Feb 13, 2021
Messages
8
Probably it's recurrent, but just 3 ears can be easily wrotten 3 times. Like, 1st year interest = x * 0.07, 2rd y.i. = (x * 0.07) * 0.07 + x * 0.07, 3th = ((x * 0.07) * 0.07 + x * 0.07) * 0.07 + x * 0.07, then floor(1st + 2rd + 3th) = 10000.

In alternate universe banks rob peoples, in this universe... well, same thing. (You can believe me: when i were even poorer now, Sberbank stole my last moneys on bread! That was very offensively.)
 

JOwen56

New member
Joined
Feb 5, 2021
Messages
12
It might be easier to solve if you create an equation first.
For A = P( 1 + r )^t , set A = 10,000 , r = 0.07 , t = 3
So 10,000= P(1.07)^3 and then solve for P.
 
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