Question

Tim left $3000 in an account that

paid 8% interest compounded
annually. How much interest did
Tim earn in 2 years?

Answer 1

499.20

Explanation:

3000

x.08. Interest rate

= 240 interest after one year

+. 3000

=3,240 principal plus interest after one year

x. .08

259.20. Interest in year two

+ 240.00 interest in year one

= 499.20. Interest earned in 2 years