Question

Regine has $93,400 in a savings account that earns 7% interest per year. How much interest will she earn in 3 years?

Answer 1

Given

`\begin{gathered} \text{ Principal,P=\$93 400} \\ \text{Rate, R=7\%} \\ \text{Time =3years } \end{gathered}`

Required: We want to find the interest after,

We need to find the Amount after,

`\begin{gathered} A=P(1+(r)/(n))^(nt) \\ \text{Where } \\ n=\text{ number of time compounded=1} \\ r=(7)/(100)=0.07 \end{gathered}`

Hence

`\begin{gathered} A=93\text{ 400(1+}0.07)^(1*3) \\ \text{Then} \\ A=93400(1.07)^3 \\ A=93400*1.225043 \\ A=114419.0162 \end{gathered}`

Then

`A=P+I`
`\begin{gathered} \text{The interest after 3 years will be } \\ I=A-P_{} \\ I=114419.0162-93\text{ 400} \\ \text{Then} \\ I=21019.0162 \\ I=21019.02 \end{gathered}`

Therefore

The interest after the 3years will be $21019.02