Jeffrey opened a savings account and deposited 100.00 as principal. The account earns 6% interest, compounded monthly. How much interest will he earn after 3 years?

Solution

Solution

Interest : 19.67

Solution steps

Translate the problem into an equation:

119.66805 \dots = 100 + I

Solve for

I, 119.66805 \dots = 100 + I : I = 19.67

Interest : 19.67

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