Question

Find the amount of money in savings account if $3200 was deposited for 3 years at 40% interest compounded annually. Find the interest

Answer 1

Explanation:

Formula for compound interest is given by

`A = P(1 + R) ^(n)`

Where

A is the amount at the end of the period

P is the principal

R is the rate

n is the period

The interest = A - P

From the question

P = $ 3200

n = 3 years

R = 40%

So we have

`A = 3200 * 2.744`

A = $ 8780.80

The amount is $ 8780.80

The interest is

$ 8780.80 - $3200

= $ 5580.80

Hope this helps you