Question

Tricia invested 8500 at 3% interest compounded annually how much interest will she earn in 3 years?

Answer 1

$16159

Step-by-step explanation: you cross multiply to find the intrest for 1 year then times it by 3

3

-------- -------

8500 100

8500x3=255oo%100=255x3=7659

$7659+$8500=16159

Answer 2

$9288.18

Explanation:

She has P = 8500 dollars to deposit for t = 3 years and it's compounded n = 1 times per year. So this means the final amount A is...

A = P*(1+r/n)^(n*t)

A = 8500*(1+0.03/1)^(1*3)

A = 8500*(1.03)^3

A = 8500*(1.092727)

A = 9288.1795

A = 9288.18