Question

A bank offers 2.12 interest compounded annually for investing money in a savings account, you open an account with $300. How much money in interest big you leave it for 10 years

Answer 1

Answer:

$\large \boxed{\ 70.02}$

Step-by-step explanation:

The compound interest formula is

$A = P\left(1 + \dfrac{r}{n}\right)^{nt}$

Data:

P = 300

r = 2.12 % = 0.0212

t = 10 yr

n = 1 calculation per year

1. Accrued amount:  

A = 300(1+ 0.0212)¹⁰

  = 300 × 1.0212¹⁰

  = 300 × 1.233 41

  = 370.02

2. Interest

I = A - P = 370.02 - 300.00 = 70.02

$\text{The interest is \large \boxed{\mathbf{\ 70.02}} }$