Find the interest earned given the following:Amount needed: $12,300 Time in years: 4Interest: 6%Compounded: Annually

Zamfir Stefan asked Mar 14, 2023

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Zamfir Stefan asked Mar 14, 2023

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12 votes

$A\text{ = }P(1+r)^t$

Replacing the information given on the formula:

Solving for P:

$P\text{ = }(12300)/(1.06^4)=9742.75$

Interest earned: 12300 - 9742.75 = 2557.25

Funtik answered Mar 18, 2023

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