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The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate
A. use the formula A=P(1+r)t for one compounding period per year or A=P(1+r/n)nt for n compounding periods per year to find how much money there will be in the account after the given numbers of years. Assume 360 days in a year
B find the interest earned

Principal Rate Compounded Time
$4000 3% daily 3 years
A. the amount of money in the account in 3 years is ?
B. The interest earned is ?

Solution Summary

This provides an example of calculating compound interest.