Answer:
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.)