Karen has $30 in a savings account with an annual interest rate of 5%. After 3 years, the interest earned will be $4.73. Using the compound interest formula, the balance after 3 years is calculated to be $34.72875. Rounded to the nearest cent, the interest earned is $4.73.
Karen has $30 in a savings account with an annual interest rate of 5%. After 3 years, the interest earned will be $4.73. Using the compound interest formula, the balance after 3 years is calculated to be $34.72875. Rounded to the nearest cent, the interest earned is $4.73.
Karen has $30 in a savings account with an annual interest rate of 5%. After 3 years, the interest earned will be $4.73. Using the compound interest formula, the balance after 3 years is calculated to be $34.72875. Rounded to the nearest cent, the interest earned is $4.73.
Karen has $30 in a savings account with an annual interest rate of 5%. After 3 years, the interest earned will be $4.73. Using the compound interest formula, the balance after 3 years is calculated to be $34.72875. Rounded to the nearest cent, the interest earned is $4.73.
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Karen has $30 in a savings account.
The interest rate is 5%,
compounded annually.
To the nearest cent, how much interest will she earn in 3 years? $
You answered: 24 remember B = p(1 + r) t
B is the balance (final amount). p is the principal (starting amount). r is the interest rate expressed as a decimal. t is the time in years. The interest is the balance minus the principal. solve Write the rate as a decimal. 5% = 0.05
Calculate the balance. B = p ( 1 + r ) t
= $30 ( 1 + 0.05 ) 3
= $30 ( 1.05 ) 3
= $30 ( 1.157625 )
= $34.72875
Now use this to find the interest, which is the balance minus the principal. $34.72875 $30 = $4.72875