Answer:
The amount earned is $27,137.65
Interest earned is $17,137.65
Explanation:
Here, we want to use the compound interest formula
We have this as follows;
A = P(1 + r/n)^nt
A is the amount
P is the principal which is the amount deposited = $10,000
r is the interest rate = 4% = 4/100 = 0.04
n is the number of times the interest is compounded per year;
Since it is every month, the number of times in a year is 12
t is the number of years = 25
Substituting these values;
A = 10,000(1 + 0.04/12)^(25*12)
A = $27,137.65
The interest earned is the difference between this amount and the amount deposited which is;
27,137.65 - 10,000 = $17,137.65