a bank pays compound interest of 6% per annum on its savings accounts julia invests $7500 for three years. calculate the total interest gained after 3 years.
+118723 a bank pays compound interest of 6% per annum on its savings accounts julia invests $7500 for three years. calculate the total interest gained after 3 years.
FV= 7500(1+0.06)^3
Interest = 7500(1+0.06)^3 -7500
7500(1+0.06)^3-7500 = $1432.62 Calculated and added at the end of each year.
But of course banks usually calculate interest daily and add it monthly so the real amount would be a bit higher than this.
