Answer: Thus interest earned in the last month of this period is 232.20 $.
Explanation:
Principal (P) = 38700
Annual rate of interest = 6.2 %
Monthly rate of interset (R) = [tex]\frac{6.2}{12}=0.52[/tex]
Time = 3 years = 36 months ( 1 year = 12 months )
Interest earned in n months = [tex]P(1+\frac{R}{100})^n-P[/tex]
Interest earned in the last month of 3 years = interest earned in 36 months - Interest earned in 35 months = [tex][38700(1+\frac{0.52}{100})^{36}]-[38700(1+\frac{0.52}{100})^{35}]=38700(1.205-1.199)=232.20[/tex]
Thus interest earned in the last month of this period is 232.20 $.
