Question

3) Suppose Sandra makes credit card purchase for $4,000 that compounds interest daily. The APR is 3%. How much interest is earned on Sandra’s card after 1 year if Sandra makes no payments? (Use the formula below for help).
A=P(1+r/n)nt

Answer 1

Answer:

$121.81

Step-by-step explanation:

A=  4000(1+.03/365)^365

$4000\left(1+\frac{0.03}{365}\right)^{365}=4121.81305\dots$