Question

Tetsuo's savings account has a balance of $1192. After 22 years, what will the amount of interest be at 1.5% compounded annually?

Answer 1

First find the future value
A=p (1+r)^t
A future value?
P present value 1192
R interest rate 0.015
t time 22 years
A=1,192×(1+0.015)^(22)
A=1,653.98

Now find the amount of interest
I=A-p
I=1,653.98−1,192
I=461.98