Question

Find the compound interest earned by the deposit. $16,000 @3% annually for 13 years

Answer 1

$\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 16000\\ r=rate\to 3\%\to \frac{3}{100}\dotfill &0.03\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &13 \end{cases} \\\\\\ A=16000\left(1+\frac{0.03}{1}\right)^{1\cdot 13}\implies A=16000(1.03)^{13}\implies A\approx 23496.5394$