Question

Calculate the interest earned when $46 230 is invested for 9 years at 7.8% p.a., with interest compounded twice a year.​

Answer 1

Given:

What is the interest earned when $46,230 is invested for 9 years at 7.8% p.a?

To find:

The interest

Solution:

• 
  `interest = (p * r * t)/(100)`
• let the interest be x.
• 
  `x = (46230 * 9 * 7.8)/(100)`
• 
  `x = 32456.46`
• But the interest is compounded twice a year so,

• 
  `32456.46 * 2 * 9`
• 
  `= 64912.92 * 9`
• 
  `= 584216.28`
• therefore, the final answer is 584,216.28