Question

Trevor deposited $8,000 into a savings account that earns 4% compound interest. How much interest did he earn after three years?

Answer 1

$8998.91

Explanation:

8000*1.04^3

it is to the power of 3 because this is the number of years

it is multiplied by 1.04 because there is 4% interest and it is 1.something because you want to add tp the 8000 so you have to multiply it by more than 1

it is 04 because this is where the units go (if it was 40% then the multiplier would be 1.4