Compound Interest Example:Compute compound interest on $100 invested at 6%for three years with annual compounding. 1st year interest is $6.00 Principal now is $106.00 2nd year interest is S6.36 Principal now is $112.36 3rd year interest is $6.74 Principal now is S119.11 Total interest earned:S19.10 THE COURSE OF FINANCE 2017 SPRING SJTU 6-8Compound Interest  Example: Compute compound interest on $100 invested at 6% for three years with annual compounding.  1st year interest is $6.00 Principal now is $106.00  2nd year interest is $6.36 Principal now is $112.36  3rd year interest is $6.74 Principal now is $119.11  Total interest earned: $19.10 THE COURSE OF FINANCE 2017 SPRING SJTU 6-8