Question

Use the formula to solve the problems. P(1+r)t The amount that results when $3,000 is compounded at 7% annually over eight years =

The interest earned in this case=

Answer 1

:-)

A=3,000×(1+0.07)^(8)
A=5,154.56

Interest earned
I=5,154.56−3,000
I=2,154.56

Answer 2

Answer: $2154.56

Explanation:

The formula to calculate the compound amount is given by :-

`A=P(1+r)^t`

, where P = Principal amount.

r= Rate of interest ( in decimal)

t= Time period. ( usually in years)

Given : The amount that results when $3,000 is compounded at 7% annually over eight years .

i.e. we have

P= $ 3000 , r = 7%=0.07 and t= 8

Then, the compound amount =
`A=3000(1+0.07)^8`

`=3000(1.07)^8=3000(1.71818617983)\\\\=5154.55853949\approx5154.56`

Hence, Compound amount after 8 years = $5154.56

Now, Interest earned = Compound amount(A) - Principal amount (P)

= $5154.56- $3000 = $2154.56

Hence, the interest earned in this case= $2154.56