SOLUTION: Justine received a bonus check from her work for $6,000. She is going to deposit the money into her bank account that receives 5% compounded annually. The amount of interest earned

Question 1041563: Justine received a bonus check from her work for $6,000. She is going to deposit the money into her bank account that receives 5% compounded annually. The amount of interest earned after year 5 is:
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!

Where

is the future value,

is the principal invested,

is the interest rate expressed as a decimal,

is the number of compounding periods per year, and

is the number of years.

The amount of interest earned after year 5 depends a great deal upon the amount of time that has passed after year 5. If you are talking about the 6th year, then you need to calculate the future value at the end of the 5th year using the formula above. Then the amount of interest earned in the 6th year is 5% of the Future Value at the end of the 5th year.

John

My calculator said it, I believe it, that settles it

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