Question

Logan opened a savings account 21 years ago with a deposit of $3,471.52. The account has an interest rate of 3.1% compounded monthly. How much interest has Logan earned?

Answer 1

P = $3,471.52, the principal
r = 3.1% = 0.031, annual ratr
n = 12, monthly compounding
t = 21 years

Note that n*t = 252.

The value after 21 years is
A = 3471.52*(1 + 0.031/12)²⁵²
= $6,650.91

The interest earned is
6650.91 - 3471.52 = 3179.39

Answer: $3,179.39