Given:
Jim opens a savings account with $22,500. His account pays 3.5% interest compounded yearly.
Required:
How much interest does he earn? What is the total value of his account when he closes it?
Step-by-step explanation:
We know the formula for the compound interest
Now, we have P = $22,500, r = 0.035 and time = 5.5 years
Answer:
Interest he earns = 27186.57 - 22500
= 4686.57
Total value of his account = 27186.57