SOLUTION: how much interest is earned in 4 years on $6,000 that is deposited in an account with 5.5% interest that compounds annually? is the answer $330.00

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Question 700307: how much interest is earned in 4 years on $6,000 that is deposited in an account with 5.5% interest that compounds annually? is the answer $330.00
Found 2 solutions by rfer, solver91311:
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
A=6000(1.055)^4
A=6000*1.23882
A=$7432.95
-------
I=7432.95-6000
I=$1432.95
You only calculated one year.

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


No. $330 is the interest earned the first year.

The total interest earned, is given by where is the initial investment, is the interest rate as a DECIMAL, and is the number of years.

John

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