Question

Lucas deposits $4,000.00 for 6 years at 2% interest, compounded monthly. How much interest does he earn at the end of the 6 years? Round to the nearest cent.

SHOW THE WORK PLEASE ​

Answer 1

$12,645

Explanation:

The computation of the interest earned is shown below:

= 4,000 × (1.02)^(6 ×12)

= $16,644.5615

Now the interest earned is

= $16,644.5615 - $4,000

= $12,645