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The formula to calculate the present amount including compound interest is A = P(1 + r/n)nt , where P is the principal amount, r is the annual rate expressed as a decimal , t is the number of years, and n is number of times per year that interest is compounded.

Then A = 2100(1 + 0.045/12)(12 x 3) = 2100 x 1.0037536 = 2402.92

The amount of interest earned = 2402.92 - 2100 = 302.92

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โˆ™ 2011-05-14 13:38:11
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Q: How much interest is earned by investing 2100 for three years at 4.5 percent compounded monthly?
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