SOLUTION: The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Principal: $4500 Rate: 6.5% Compounded: monthly

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Question 1175023: The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate.
Principal: $4500
Rate: 6.5%
Compounded: monthly
Time: 4 years
A. Find how much money there will be in the account after the given number of years.
B. Find the interest earned.
Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!

The formula for compound interest is :
A=P%281%2Br%2Fn%29%5E%28nt%29
given:
P=4500
R=6.5% =>r=0.065
n=12 (monthly)
t=4 years

A. Find how much money there will be in the account after the given number of years.
A=4500%281%2B0.065%2F12%29%5E%2812%2A4%29
A=4500%281%2B0.005416666666666667%29%5E48
A=4500%281.005416666666666667%29%5E48
A=4500%2A1.296020435413509416
A=5832.09

B. Find the interest earned.
I=A-P
I=5832.09-4500
I=1332.09