Answer:
The amount is $18548.38 and the interest is $2548.38
Steps for solution:
First you want to use the formula A=P(1+[tex]\frac{r}{n}[/tex])^n*t. A= total amount, P= principle or amount of money deposited, r= annual interest rate, n= number of times compounded per year. and t= time in years. In the problem we have P= $16000, r= 3%, n= 1 and t= 5 years. The first picture is the formula used to find the total amount. After we use the formula A=P+I, since A=18548.38 and P=16000. The second picture represents the interest after 5 years.
