An investment of $1,000 is earning interest at the rate of 3.8% compounded daily over 3 years. Approximately how much interest is earned on the investment?

a.

$892.26

b.

$1120.75

c.

$120.75

d.

$38.73

Question

An investment  of $1,000 is earning interest at the rate of 3.8% compounded daily over 3 years. Approximately how much interest is earned on the investment?


a.
 
$892.26
 

b.
 
$1120.75
 

c.
 
$120.75
 

d.
 
$38.73

cj49 · Answer

compound interest is A=P(1+r/100)^t

Where A stands for Amount, P stands for Principal/Loan, R stands for Rate and T stands for time