Given:
P = $22,000, the principal
r = 7% =0.07, the rate
n = 1, annual compounding
t = 3 years
The value after 3 years is
[tex]A=P(1+ \frac{r}{n} )^{nt}[/tex]
That is,
A = 22000(1.07)³ = $26,950.95
Interest earned = $26,950.95 - $22,000 = $4,950.95
Answer: $4,950.95
