Question

You deposit $3,000 in an account that pays 2% compound interest. How much have you earned in interest at the end of 4 years? Round your answer to the nearest cent.

Answer 1

I think you would take 3,000 * 2% = whatever number and take that times 4 to get your answer?

Answer 2

3,000 * ( ( ( 1 + 3% ) / 1 ) ^ 1 * 4 ) = 12360

Answer 3

\[A= P(1+\frac{ r }{ n })^{nt}\]