Question

Fred invests $13,915 into an account that yields 6.14% interest annually. How much interest will Fred have earned after 18 years? Round answers to the nearest cent (2 decimal places).

Answer 1

After 18 years, Fred would have earned $40,675.05

Explanation:

Since we know that Fred has $13,915 and the interest annually (every year) is 6.14%, we can just solve for 18 years.

In the case, the equation would be the following:

13.915 x (1 + 0.0614) ^ 18

This equation would get you $40,675.05

Hope this helped! :D