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26 October, 20:08

Mason deposited 80 in a savings account earning 5% interest, compounded monthly. to the nearest cent, how much interest will he darn in 3 years?

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  1. 26 October, 22:24
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    Principal, P = $80

    monthly interest, i = 5%/12 = 0.05/12

    Number of periods, n = 3*12 = 36

    Interest earned after three years,

    I = P ((1+i) ^n-1)

    =80 ((1+0.05/12) ^36-1)

    =12.92 (to the nearest cent.
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