474,498 views
12 votes
12 votes
Find the amount of interest on $35,000 at 9.72% compounded monthly for 32 months

User Nivix Zixer
by
2.8k points

1 Answer

22 votes
22 votes

9514 1404 393

Answer:

$10,308.92 interest earned

Explanation:

The account balance is given by ...

A = P(1 +r/12)^n

where principal P earns interest at annual rate r compounded monthly for n months. In this case, the balance would be ...

A = $35,000(1 +0.0972/12)^32 = $45,308.92

The interest earned is the excess of the balance over the original investment:

interest = $45,308.92 -35,000 = $10,308.92

User Lupita
by
3.0k points