Using <span>Compound interest formula:
</span>
<span><span>The exponential function for calculating the amount of money after <span>t <span>years, <span>A<span>(<span>t<span>), where<span> P <span>is the initial amount or principal, the annual interest rate is <span>r <span>and the number of times<span> interest is compounded per year is <span>n, is given by</span>
</span></span></span></span></span></span></span></span></span></span></span></span>
</span><span>from the given information:
p = 1,380 , r = 0.05 , t =3 and </span><span>compounded daily ⇒⇒⇒ n =365
Amount after 3 years = </span>
<span>
= 1,603.315
</span>
</span>
<span><span>The exponential function for calculating the amount of money after <span>t <span>years, <span>A<span>(<span>t<span>), where<span> P <span>is the initial amount or principal, the annual interest rate is <span>r <span>and the number of times<span> interest is compounded per year is <span>n, is given by</span>
</span></span></span></span></span></span></span></span></span></span></span></span>
</span><span>from the given information:
p = 1,380 , r = 0.05 , t =3 and </span><span>compounded daily ⇒⇒⇒ n =365
Amount after 3 years = </span>
<span>
</span>