Question

Jake’s bank offers him an account with 3% interest, compounded

annually. How much interest would he earn from this account if he
deposits his $1,320 for 5 years?

Answer 1

`\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{compounded amount}\\ P=\textit{original amount deposited}\to &\$1320\\ r=rate\to 3\%\to (3)/(100)\to &0.03\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, meaning once} \end{array}\to &1\\ t=years\to &5 \end{cases}`

he'll be earning in interest, the difference from A to P, or A - P