Question

Fred invests $11,681 into an account that yields 4.71% interest annually. How much interest will Fred have earned after 27 years?

Round answers to the nearest cent (2 decimal places),

Answer 1

To calculate the interest earned, we can use the formula: Interest = Principal × Rate × Time. Plugging in the values, Fred will have earned approximately $14,700.87 in interest after 27 years.

Step-by-step explanation:

To calculate the interest earned, we can use the formula:

Interest = Principal × Rate × Time

Where:

• Principal = $11,681
• Rate = 4.71% = 0.0471 (expressed as a decimal)
• Time = 27 years

Plugging in the values, we have:

Interest = $11,681 × 0.0471 × 27

Calculating this, we find that Fred will have earned approximately $14,700.87 in interest after 27 years.