Answer:
[tex]\$57.88[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=3\ years\\ P=\$50\\ r=5\%=5/100=0.05\\n=1[/tex]
substitute in the formula above
[tex]A=50(1+\frac{0.05}{1})^{1*3}[/tex]
[tex]A=50(1.05)^{3}[/tex]
[tex]A=\$57.88[/tex]
