SOLUTION: The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate.
Principal
Rate
Compounded
Time
$ 12 comma 000
2 %
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-> SOLUTION: The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate.
Principal
Rate
Compounded
Time
$ 12 comma 000
2 %
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Question 1162037: The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate.
Principal
Rate
Compounded
Time
$ 12 comma 000
2 %
annually
3 years
A. Find how much money there will be in the account after the given number of years.
B. Find the interest earned. Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! P=Po(1+r/n)^nt where r= rate, n= number of compounding times per year and t is number of years
so this is P=12000(1+.02/1)^3 or 12000(1.02)^3
round at the end
P=$12,734.50
The interest is everything above $12000 that was the original principal, or $734.50.
