Mr. Weinstein has a savings with a balance of $19,211.34. It pays 4% interest compound daily. What is his ending balance after 3 years, if no deposits or withdrawals are made? How much interest does he earn in 3 years?

A]

The balance after 3 years will be obtained using the formula:

A=p (1+r) ^n

where:

A=future value

p=principle

r=rate

n=time

From the question:

p=19,211.34, r=4%, n=3 years

thus

plugging the values in the formula we have:

A=19211.34 (1+4/100) ^3

simplifying this we get:

A=$21,610.145

b] Interest earned was:

=A-P

plugging the values we get:

21610.145-19211.34

=$2398.81