SOLUTION: If $400 is invested at 3% compounded monthly, what is the interest earned after: 4 years interest earned= 5 years interest earned=

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Question 1035114: If $400 is invested at 3% compounded monthly, what is the
interest earned after:
4 years interest earned=
5 years interest earned=
Found 3 solutions by addingup, Edwin McCravy, MathTherapy:
Answer by addingup(3677)   (Show Source): You can put this solution on YOUR website!
400(1+0.03/12)^12*4 = interest amount in 4 years. Subtract initial amount (400) and you have interest earned.
Answer by Edwin McCravy(20060)   (Show Source): You can put this solution on YOUR website!
If $400 is invested at 3% compounded monthly, what is the
interest earned after:
4 years interest earned=
5 years interest earned=
First we find what $400 will have grown to by using the
formula



where 
P = the beginning amount = 400
r = the percentage interest expressed as a decimal = 0.03
n = the number of times per year interest is accumulated = 12
t = the number of years that have passed since the money was invested = 4
in the first part of the problem and 5 in the second.
A = the amount the $P will have grown to after n years.

So substitute those in the formula and calculate A. 
Then subtract P from A to find out how must interest
was added over those 4 or 5 years.

Edwin
Answer by MathTherapy(10555)   (Show Source): You can put this solution on YOUR website!

If $400 is invested at 3% compounded monthly, what is the
interest earned after:
4 years interest earned=
5 years interest earned=
 

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