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Amelia's investment of $9810 earns

interest at 2.7% per year
compounded quarterly over 13 years.
What is the amount of interest
earned?
Write your answer to the nearest cent.
Interest =

1 Answer

4 votes

Answer:

Explanation:

To calculate the amount of interest earned by Amelia's investment, we can use the formula for compound interest:

A = P * (1 + r/n)^(nt), where

A = amount after t years

P = principal amount ($9810)

r = annual interest rate (2.7%)

n = number of times the interest is compounded per year (quarterly, so n = 4)

t = number of years (13)

Plugging in the values, we get:

A = $9810 * (1 + (0.027/4))^(4 * 13)

A = $9810 * (1.00675)^52

A = $9810 * 1.8972436

A = $18561.61 (rounded to nearest cent)

Therefore, the interest earned by Amelia's investment is $18561.61 - $9810 = $8751.61.

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