Question

Find the interest earned given the following:Amount needed: $12,300Time in years: 3Interest: 6%Compounded: Annually

Answer 1

As given by the question

There are given that the value to find the interest is:

`\begin{gathered} \text{Amount}=12300 \\ \text{Time}=3 \\ \text{Interest 6\%} \end{gathered}`

Now,

From the formula to find the interest:

`I=P* r* t`

Where,

`\begin{gathered} P=12300 \\ T=3 \\ I=6\%=0.06 \end{gathered}`

Then,

Put all values into the given formula:;

So,

`\begin{gathered} I=P* r* t \\ I=12300*0.06*3 \\ I=2214. \end{gathered}`

Hence, the interest earned is $2214.