Question

2. Sumara Kato's savings account has a balance of $1663. After 19 years, how much interest

will she have eamed if her rate is 5.5% compounded annually?

Answer 1

Explanation:

interest = Amount - principal

A = P(1+r)^t

r = 5.5% = 5.5/100 = 0.055

A = 1663(1+ 0.055)^19

A = 1663 (1.055)^19

A = 4,599.270812203411

Let’s say A = 4,599

interest = 4,599-1663 = 2,936