Question

Laura deposits $2,000 in an account that has an annual interest rate of 1.96%,

Answer 1

Answer:

$3.23

Step-by-step explanation:

Given that,

Principal, P = $2,000

Rate of interest, r = 1.96%

Tie, n = 1 month = (1/12) years

The formula of compound interest is given by :

$CI=P[(1+\dfrac{R}{100})^n-1]\\\\CI=2000\times [(1+\dfrac{1.96}{100})^{1/12}-1]\\\\CI=3.23$

So, the interest will she earn at the end of 1 month is $3.23