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15 February, 13:03

Denise deposited $300 in an savings account earning 1% interest, compounded annually. How much interest will she earn in 2 years

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  1. 15 February, 13:27
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    she'll earn $6.03 in interest

    Step-by-step explanation:

    A = P (1 + r) ^ (t)

    A = 300 (1+.01) ^2 = 300 (1.01^2) = 306.03

    So she will earn 306.03 - 300 = $6.03 in two years
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