Question

Lizbeth deposited $6200 into a savings account for which interest is compounded monthly at a rate of 2.37%. How much interest will she earn after 8 years?

Answer 1

To calculate the interest, you can use the compound interest formula: A = P(1 + r/n)^(nt). Plugging in the given values, Lizbeth will earn approximately $1088.82 in interest after 8 years.

Step-by-step explanation:

To calculate the interest earned, we can use the compound interest formula:

A = P(1 + r/n)^(nt)

Where:

• A is the final amount
• P is the principal (initial deposit)
• r is the interest rate (2.37% in decimal form)
• t is the time period in years (8 years)
• n is the number of times interest is compounded per year (12 since it is compounded monthly)

Plugging in the given values, we have:

A = $6200(1 + 0.0237/12)^(12*8)

Solving this equation, we find that Lizbeth will earn approximately $1088.82 in interest after 8 years.

Answer 2

do 2.37/100 times $6200 but make sure you divide 100 by $6200 which is 62 times 2.37=146.94