Question

An amount of $5,000 is invested. The interest rate is 3%. What is the amount earned in one year?

Answer 1

$5,152.08

a = p (1 + r/n)^nt

Answer 2

$150

Explanation:

To solve this we first must find what 3% is in decimal form. Move the decimal to the left 2 spots. 3% -> 0.03

Then multiply...

5000 · 0.03 = 150