Question

Gina invested $10,000 at 1.5% interest compounded annually. How much interest will Gina

earn in 2 years?


Please anwser with explanation

Answer 1

In Compound Interest

Amount = Principal [ 1+ (R/100)]^n

Amount = $10000 [ 1+ (1.5/100)]^2

Amount= $10000 (1.015)^2

Amount = $10000×1.030225

Amount= $ 10302.25

Amount- Principal = Interest

$10302.25-$10000 =$302.25

Explanation: