Question

Jake’s bank offers him an account with 3% interest, compounded

Answer 1

$\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{compounded amount}\\ P=\textit{original amount deposited}\to &\ 1320\\ r=rate\to 3\%\to \frac{3}{100}\to &0.03\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, meaning once} \end{array}\to &1\\ t=years\to &5 \end{cases}$

he'll be earning in interest, the difference from A to P, or A - P