| Use the regular compound interest
formula A = P (1 + r/n ) nt with P = 3000, r = 5/100 = 0.05, n = 365, and t = 4 ( assume no leap years ). (a) Therefore,
(b) The interest gained after 4 years = $ (3664.16 - 3000.00) = $664.16. |
Question 3
| An amount of $3000.00 is deposited in a
bank paying an annual interest rate of 5 % compounded
daily. (a) Find the balance after 4 years. (b) Find the interest gained in 4 years. |
Solution
| Use the regular compound interest
formula A = P (1 + r/n ) nt with P = 3000, r = 5/100 = 0.05, n = 365, and t = 4 ( assume no leap years ). (a) Therefore,
(b) The interest gained after 4 years = $ (3664.16 - 3000.00) = $664.16. |
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