mookiemooks07
contestada

Brendan deposited $3,967 in an account earning 5% interest compounded annually.
To the nearest cent, how much interest will he earn in 5 years?

pls it’s urgent

Respuesta :

mhanifa

Answer:

  • $1096.01

-------------------------------------

Given:

  • Deposit P = $3967,
  • Interest rate r = 5% = 0.05,
  • Time t = 5 years,
  • Number of compounds n = 1.

Find  the total amount after 5 years:

  • [tex]A = P(1 + r/n)^{nt}[/tex]
  • [tex]A = 3967(1+0.05/1)^{5*1}=3967(1.05)^5=5063.01\ rounded[/tex]

Find the amount of interest:

  • I = A - P
  • I = 5063.01 - 3967 = 1096.01

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