Calculate the amount of interest earned in 10 years on 1000.00 invested at 3.00% per annum, compounded monthly.

Answer 1

P = Po(1+r)^n

Po = $1000.

r = (3%/12)/100% = 0.0025 = Monthly %
rate expressed as a decimal.

n = 10yrs. * 12Comp/yr = 120 Compounding
periods.

Plug the above values into the given Eq
and solve for P.

I = P - Po