Chelsea invested $15,000 at 4% interest compounded annually. How much interest will she earn in 4 years?

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asked Dec 25, 2017 205k views

2 Answers

Abhijeet Dhumal · Answer 1 · 2018-01-01T03:03:29+0000

P = 15000, r = 4% = 0.04 per year, n = 4 years.

A = P(1 + r)ⁿ

A = 15000(1 + 0.04)⁴

A ≈ 15000(1.04)⁴ ≈ 17547.88

Interest = Amount - Principal = 17547.88 - 15000 =2547.88

Interest ≈ $ 2547.88

Chelsea invested $15,000 at 4% interest compounded annually. How much interest will she earn in 4 years?

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