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77julia77 [94]
3 years ago
9

you invested $1,900 at a 4% interest compounded annually for 3 years.how much interest did you earn in 3 years

Mathematics
1 answer:
zzz [600]3 years ago
7 0

Answer:

The amount is $2137.24 and the interest is $237.24.

Step-by-step explanation:

STEP 1: To find amount we use formula:

A = P(1+\frac{x}{y} )nt

A = total amount P = principal or amount of money deposited, r = annual interest rate n

= number of times compounded per year t = time in years In this example we have

P = $1900 , r = 4% , n = 1 and t = 3 years

After plugging the given information we have

A = 1900 (1+\frac{0.04}{1})^{1*3}

A = 1900 · 1.04^{3}

A = 1900 · 1.124864

A = 2137.24

STEP 2: To find interest we use formula A = P + I, since A = $2137.24 and P = $1900 we

have:

A = P + I

2137.24 = 1900 + I

I = 2137.24 − 1900

I = 237.24

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