Question

Find the interest earned: $26,000 for 36 months at 7.5% annual compound interest

Answer 1

Answer:

Interest = $6,300 (Approx.)

Step-by-step explanation:

Given:

Amount deposit (P) = $26,000

Number of month = 36 month

Number of year (n) = 36 / 12 = 3 year

Rate of interest (r) = 7.5% = 0.075  

Find:

Interest  earned

Computation:

Interest = p[(1+r)ⁿ-1]

Interest = 26,000[(1+0.075)³-1]

Interest = 26,000[(1.075)³-1]

Interest = 6,299.71

Interest = $6,300 (Approx.)