Answer
compound amount is 5,375.60 dollars
interest is 1,375.60 dollars
Work Step by Step
Using the 3% column of the compound interest table, the compound amount for 10 years is found to be 1.3439. Multiply this amount times the principal to calculate the amount at the end of 10 years..
$1.3439×4,000=5,375.60$ dollars
The interest is the difference between the compound amount and the principal.
$5,375.60-4,000=1,375.60$ dollars
