Question

Find the interest

earned:
$26,000 for 36 months
at 7.5% annual
compound interest

Answer 1

Interest = $6,300 (Approx.)

Explanation:

Given:

Amount deposit (P) = $26,000

Number of month = 36 month

Number of year (n) = 36 / 12 = 3 year

Rate of interest (r) = 7.5% = 0.075

Find:

Interest earned

Computation:

Interest = p[(1+r)ⁿ-1]

Interest = 26,000[(1+0.075)³-1]

Interest = 26,000[(1.075)³-1]

Interest = 6,299.71

Interest = $6,300 (Approx.)