STEP 1: To find amount we use formula:
A=P(1+rn)n⋅t
A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years
In this example we have
P=$3500 , r=10% , n=12 and t=8 years
After plugging the given information we have
AAAA=3500(1+0.112)12⋅8=3500⋅1.00833396=3500⋅2.218105=7763.37
STEP 2: To find interest we use formula A=P+I, since A=7763.37 and P = 3500 we have:
A7763.37II
This is an example
