Question

For compound interest savings, what are the interest earnings for the lender the first year for $2,300 saved at 13% annual interest compounded annually?

Answer 1

$\bf \qquad \textit{Compound Interest Earned Amount}\\ A=P\left(1+\frac{r}{n}\right)^{nt} \qquad \begin{cases} A=\textit{current amount}\\ P=\textit{original amount deposited}\to &\ 2,300\\ r=rate\to 13\%\to \frac{13}{100}\to &0.013\\ n=\textit{times it compounds per year}\to &1\\ t=years\to &1 \end{cases}$

A is amount accrued in one year
to get the interest earned, simply subtract the Principal from the
amount A