Question

Find the interest earned given the following:Amount needed: $9,350Time in years: 3Interest: 5%Compounded: semiannually

Answer 1

We can use the compounded interest formula to find the interest earned given the information on the problem:

`\begin{gathered} P=9350 \\ r=0.05 \\ t=3 \\ \Rightarrow A=9350(1+(0.05)/(2))^(2\cdot3)=9350(1+0.025)^6=10843.13 \end{gathered}`

we have that after 3 years, the ammount acquired is $10843.13, which means that the interest earned is 1493.13