Question

Find the interest earned on a $30,000 deposit for 6 months at 12% interest.

compounded continuously.

Answer 1

3,600

Explanation:

First you have to know that 12% is the same as .12 Since you have 12%interest you would multiply 30,000 × .12 When you do you get 3,600. This is your interest. You could also do it another way. You could take 30,000 and divide it by the 6 months. You get 5,000. Now you would take this number and multiply it by .12(the 12%) and get 600. This is interest per month. Since you have 6 months you multiply 600×6. You end up with 3,600.