After 3 years, what will be the final profit on a $1,000 investment at a 10% compound interest?

To determine the final profit on a $1,000 investment at a 10% compound interest over 3 years, we can use the formula for compound interest:

[ A = P(1 + r)^n ]

Where:

• ( A ) is the amount of money accumulated after n years, including interest.
• ( P ) is the principal amount (the initial amount of money).
• ( r ) is the annual interest rate (decimal).
• ( n ) is the number of years the money is invested or borrowed.

In this case:

• ( P = 1000 )
• ( r = 0.10 ) (as 10% expressed as a decimal)
• ( n = 3 )

Substituting these values into the formula gives:

[ A = 1000(1 + 0.10)^3 ] [ A = 1000(1.10)^3 ] [ A = 1000 \times 1.331 ] [ A = 1331 ]

The final amount accumulated after 3 years is $1,331. To find the profit, we subtract the initial investment from this amount:

[ \text{Profit} =