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SSSSS [86.1K]
3 years ago
12

Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $3,000 in the bank and leave it there: (Do not ro

und intermediate calculations. Round your answers to 2 decimal places.) a. How much interest will you earn in the first year?
Business
1 answer:
____ [38]3 years ago
8 0

Answer:

Interest= $90

Explanation:

Giving the following information:

Initial investment= $3,000

i= 3%

Number of periods= 1

<u>First, we need to calculate the future value, using the following formula:</u>

FV= PV*(1+i)^n

FV= 3,000*1.03= $3,090

<u>Now, the interest earned:</u>

Interest= 3,090 - 3,000

Interest= $90

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