Final answer:
The amount of interest earned on Jason's card after 1 year is $123.29. Correct option is b)
Step-by-step explanation:
To find the amount of interest earned on Jason's credit card after 1 year, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount (including principal and interest)
P is the initial principal (the credit card purchase amount)
r is the annual interest rate (4% or 0.04)
n is the number of times the interest is compounded per year (365 for daily compounding)
t is the number of years (1 in this case)
Plugging in the values for Jason's purchase, we get:
A = 3000(1 + 0.04/365)^(365*1)
Simplifying this equation, we find that the final amount after 1 year is approximately $3123.29.
To calculate the amount of interest earned, we subtract the initial principal from the final amount:
Interest = 3123.29 - 3000 = $123.29.
Therefore, the correct answer is $123.29, option b).