Step-by-step explanation:
step 1. A = P(1 + r/n)^nt. this is the compounding equation where n is the number of compounds in a time t and P is the original amount. r is the rate.
step 2. A = 3000(1 + .04/365)^(365(1))
step 3. A = 3122.43. this is the total amount owed on the credit card which includes principle and interest. the interest is less 5he principle
step 4. 3122.43 - 3000 = 122.43
