SOLUTION: Cindy has a savings account with National Bank. She earns 4% interest compounded yearly on $1,250.00. What amount will she receive in interest in three years?

SOLUTION: Cindy has a savings account with National Bank. She earns 4% interest compounded yearly on $1,250.00. What amount will she receive in interest in three years?

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Question 1038829: Cindy has a savings account with National Bank. She earns 4% interest compounded yearly on $1,250.00. What amount will she receive in interest in three years?

Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!

where

is the future value,

is the present value or invested principal,

is the decimal representation of the annualized interest rate,

is the number of compounding periods per year, and

is the number of years.

The total interest earned is:

Plug in your numbers and do the arithmetic

John
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