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If the compound interest formula gives you $13,200 and your investment was $11,500, how much interest did you earn?

User Bame
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Answer:

$1700

Explanation:

The compound interest formula gives the total value of the investment after a certain duration considering the rate of interest.

To fins the amount of interest gained, we deduct the initial value of investment from the total compound amount.

Interest=A-P

Where P is principal amount of investment and A is the final value of money.

Substituting $13200 for A and $11500 for P then

I=13200-11500=$1700

Therefore, interest amount is equivalent to $1700

User Zeisi
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