Question

Find the compound interest earned by the deposit. Round to the nearest cent. $11,000 at 2% compounded annually for 17 years.A) $3520.00B) $4402.66C) $4100.64D) $3740.00

Answer 1

Compound Interest Formula:

`CI=P(1+(r)/(n))^(nt)`

where:

P = $11,000

r = 0.02

n = 1

t = 17

Hence:

`CI=11,000*(1+0.02)^(17)=15,402.66`

Interest earned:

`15,402.66-11,000=4,402.66`

ANSWER

B) $4402.66