Edgar opened a savings account and deposited 200.00 as principal. The account earns 3% interest, compounded annually. How much interest will he earn after 6 years?

Solution

Solution

Interest : 38.81

Solution steps

Translate the problem into an equation:

238.81045 \dots = 200 + I

Solve for

I, 238.81045 \dots = 200 + I : I = 38.81

Interest : 38.81

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