Question

100Lola has $7,403 in a savings account. The interest rate is 11 91%, compounded annually.To the nearest cent, how much interest will she earn in 4 years?

Answer 1

The simple interest rate is given by:

I = P*r*t

where,

P: principal = $7403

r: interest rate = 11 91/100% = 11.91% = 0.1191

t: years = 4

Replace the previous values of the parameters into the formula for I and simplify:

I = ($7403)(0.1191)(4) = $3526.79

Hence, the interest is $3526.79