Answer:
I = 337.56
Step-by-step explanation:
Given that,
Principal, P = 1500
Rate, R = 7%
Time, t = 3 years
We need to find the interest if it is compounded annually. We know that, the amount is given by :
[tex]A=P(1+\dfrac{r}{100})^n[/tex]
Put all the values,
[tex]A=1500\times (1+\dfrac{7}{100})^3\\\\A=1837.56[/tex]
We know that,
Interest = Amount - Principal
I = 1837.56 - 1500
I = 337.56
Hence, the interest is equal to 337.56.
