$350 at 3% for 10 years a. Find the interest earned. $ b. Find the balance of the account. $

Answer 1

A=350(1.03)^10 =$470.37

interes = $120.37

for annual compounding

A=350(1+.03/n)^10n for compounding n times per year

n=4 for quarterly compounding

n=12 for monthly compounding

n=365.25 for daily compounding

3%=.03=r=APR

t=10 years

P=$350

A=350e^.3 for continuous compounding

=$472.45

interest=$122.45

general formulas are

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

A= Pe^rt where n approaches infinity