Question

You deposit $2200 Into three separate bank accounts for each pay 3% annual interest. How much interest does each account earn after 6 years?

Answer 1

The formula to find the amount is

$A=P(1+r)^n$

Here A = amount

P is the principal

r is the rate

n is the number of years

Then to find the interest we subtract principal from amount.

Interest = A - P

Here

P= 2200, r = 3% = 0.03 , n = 6 years

$A = 2200 (1+0.03)^6=2626.92$

Hence the interest earned = 2626.92-2200 = $426.92

Now if the total of $2200 was deposited in three banks then each account earns $\frac{426.92}{3}= 142.31$

Each account earns $142.31