$\$3500$$3500 is invested for three years at a rate of $10%$10% p.a., compounding annually.

a

Complete the table below to determine the final value of the investment.

Balance + interest | Total balance | Interest earned | |
---|---|---|---|

First year | $-$− | $\$3500$$3500 | $\$350$$350 |

Second year | $\$3500+\$350$$3500+$350 | $\$3850$$3850 | $\$385$$385 |

Third year | $\$3850+\$$$3850+$$\editable{}$ | $\$$$$\editable{}$ | $\$$$$\editable{}$ |

Fourth year | $\$4235$$4235$+$+$\$$$$\editable{}$ | $\$$$$\editable{}$ | $-$− |

b

Calculate the total interest earned over the three years.

Easy

Approx 4 minutes

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