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25 votes
25 votes
Dolores deposited $2500 into a savings account which interest compounded monthly at a rate of 2.12%

How much interest will they earn after 8 years? Round to the nearest dollar


Help pleaseeeeeeeeeee

User Lingfeng Xiong
by
2.8k points

2 Answers

21 votes
21 votes

Answer:

2961.63

Explanation:

First, convert R as a percent to r as a decimal

r = R/100

r = 2.12/100

r = 0.0212 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 2,500.00(1 + 0.0212/12)(12)(8)

A = 2,500.00(1 + 0.001766667)(96)

A = $2,961.63

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $2,500.00 at a rate of 2.12% per year compounded 12 times per year over 8 years is $2,961.63.

User Sifatur Rahman
by
3.2k points
20 votes
20 votes

Answer:

I=$424

Explanation:

I=PRT

I=2500×8×0.0212

I=$424

User Terence Chow
by
3.2k points