3)
Principal Amount = P = $7200
Interest rate = r = 4% = 0.04
Time = t = 8 years
Formula for compounding is:
Using the values, we get:
Therefore, the compounded amount will be $9853.70
4)
Principal Amount = P = $7200
Compounded Amount = A = $9853.70
Interest Earned = Compounded Amount - Principal Amount
So,
Interest Earned = 9853.70 - 7200 = $2653.70
Therefore, $2653.70 will be earned as interest over a period of 8 years.
Principal Amount = P = $7200
Interest rate = r = 4% = 0.04
Time = t = 8 years
Formula for compounding is:
Using the values, we get:
Therefore, the compounded amount will be $9853.70
4)
Principal Amount = P = $7200
Compounded Amount = A = $9853.70
Interest Earned = Compounded Amount - Principal Amount
So,
Interest Earned = 9853.70 - 7200 = $2653.70
Therefore, $2653.70 will be earned as interest over a period of 8 years.