Question

Correct answers only!

To the nearest cent, how much interest will she earn in 3 years?


Use the formula B = p(1 + r)t, where B is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Answer 1

$5180.12

Explanation:

B=4000(1+0.09)^3

Answer 2

885.1

Explanation:

p = 3000

r = 9/100 = 0.09

t = 3 years

B = 3000 * (1+ 0.09)^3

B = 3000 * (1.09)^3

1.09^3 = 1.09*1.09 * 1.09 = 1.295

B = 3000 * 1.295

B = 3885.10

So the interest is Balance - principle = 3885.1 - 3000 = 885.1