Final answer:
To determine the amount of interest earned, we can use the formula for compound interest. In this scenario, Brittany deposited $2,000 compounded daily for 20 days and earned $1.00301. Calculating the compound interest, the amount earned is approximately $3.01.
Step-by-step explanation:
To determine the amount of interest earned, we can use the formula for compound interest:
Compound Interest = P(1 + r/n)^(nt) - P
Where:
P = principal amount (initial deposit)
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
In this scenario, Brittany deposited $2,000 compounded daily for 20 days. The interest earned is given as $1.00301 for 20 days. Let's plug in the values:
Principal (P) = $2000
Number of times compounded per year (n) = 365 (since it's compounded daily)
Number of years (t) = 20 / 365 (since it's 20 days)
Annual interest rate (r) = (1.00301 - 1)
Using these values, we can calculate the amount of interest earned:
Compound Interest = 2000 * (1 + ((1.00301 - 1) / 365))^(365 * (20 / 365)) - 2000
After calculating, the amount of interest earned is approximately $3.01.