Answer: $165.23
Explanation:
To solve the problem, we can use the formula for compound interest:
A = P (1 + r/n)^(nt)
where A is the amount, P is the principal (initial amount), r is the annual interest rate as a decimal, n is the number of times the interest is compounded per year, and t is the time in years.
In this case, P = $125, r = 0.19 (since the interest rate is 19%), n = 1 (since the interest is compounded annually), and t = 48/12 = 4 (since the time is given in months but we need to convert it to years). Plugging in these values, we get:
A = 125 (1 + 0.19/1)^(1*4)
A = 125 (1.19)^4
A ≈ $290.23
So, the total amount after 48 months is approximately $290.23. To find the interest earned, we subtract the principal from the amount:
Interest = Amount - Principal
Interest = $290.23 - $125
Interest = $165.23
Therefore, Min-jun will earn $165.23 in interest in 48 months.