Answer:
The amount is 5,955.08
Step-by-step explanation:
Here, we want to calculate compound interest
We can find this by using the compound interest formula
A = P( 1 + r/n)^nt
A is amount
P
is the principal = 5,000
r is the interest rate = 6% = 6/100 = 0.06
n is the number of times per year in which the interest is compounded = 1
t is the number of years = 3
Substituting these values;
A = 5,000(1 + 0.06/1)^3(1)
A = 5000(1.06)^3
A = 5,955.08
