Precalculus
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F.17 Compound interest: word problems 2WU
Ronnie opened a Savings account and deposited $800.00 as principal. The account earns 1%
interest, compounded monthly. How much interest will he earn after 3 years?
Round your answer to the nearest cent.

$24.35

Step-by-step explanation:

We will use the compound interest formula provided to solve this problem:

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, change 1% into a decimal:

1% -> -> 0.01

Since the interest is compounded monthly, we will use 12 for n. Lets plug in the values now:

Lastly, subtract A from the principal to get the interest earned:

a - base

b - exponent

so,

multiple all that

step-by-step explanation:

27×17