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Awnser correctly please

Tilda deposited 62,604.18 in a saving account earning 13% interest, compounded annually. To the nearest cent how much interest will she earn in 1 year?

User Saad Qamar
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1 Answer

6 votes

Answer: the interest is $8137.8

Explanation:

We would apply the formula for determining compound interest which is expressed as

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

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = $62,604.18

r = 13% = 13/100 = 0.13

n = 1 because it was compounded once in a year.

t = 1 year

Therefore,.

A = 62604.18(1 + 0.13/1)^1 × 1

A = 62604.18(1.13)

A = $70742.7

Her interest would be

70742.7 - 62604.18

= $8137.8

User Ihor Korotenko
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