Tim opened a savings account and deposited 300.00 as principal. The account earns 5% interest, compounded monthly. How much interest will he earn after 3 years?

Solution

Solution

Interest : 48.44

Solution steps

Translate the problem into an equation:

348.44166 \dots = 300 + I

Solve for

I, 348.44166 \dots = 300 + I : I = 48.44

Interest : 48.44

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