Wanda opened a savings account 20 years ago with a deposit of $3,150.37. The account has an interest rate of 4.1% compounded daily. How much interest has Wanda earned?

Question

anonymous · Answer

Use the interest formula: I=PRT

anonymous · Answer

No, compound interest formula!

anonymous · Answer

Okay, 
M = P( 1 + i )n

M is the final amount including the principal.

P is the principal amount.

i is the rate of interest per year.

n is the number of years invested.

anonymous · Answer

Pay attention at the key word "Compounded daily"

anonymous · Answer

Now plug, it in, @Sebivid , and tell us.

anonymous · Answer

thats the wrong formula

anonymous · Answer

I know i have to use the Compound interest formula but i dont know how to slove for I

anonymous · Answer

Put the compound interest formula here, and we can see.

anonymous · Answer

Compounded daily:
i = r/ 365 = .041/365 = ...
t = 20 yrs * 365 days = ...

anonymous · Answer

$$A=P(1+r/n) ^{nt}$$

anonymous · Answer

Correct!

anonymous · Answer

$7,152.59
Just got it!! thanks for the help

anonymous · Answer

Not yet, in order to find interest:
I = A - P

anonymous · Answer

Ohh right

anonymous · Answer

4002.22
Thank You again!!

anonymous · Answer

:)