Question

Trica invested $8500 at 3% intrerest compund annually.How much interest will she earn in 3 years.

A. $255.00

B.$788.18

C.$9,288.18

D:$10,174.50

Answer 1

`\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\$8500\\ r=rate\to 3\%\to (3)/(100)\to &0.03\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\to &1\\ t=years\to &3 \end{cases} \\\\\\ A=8500\left(1+(0.03)/(1)\right)^(1\cdot 3)\implies A=8500(1.03)^3\implies A\approx 9288.1795`

so, her earned interest is A - 8500.