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2. How much interest is earned by investing $2100 for three years at 4.5% compounded
monthly?

1 Answer

1 vote

Answer:

The final balance is $2,402.92.

The total compound interest is $302.92.

Explanation:

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

A = final amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

A=2100(1+.045/12)^(3*12)

A=2100(1.00375)^(36)

A=2100*1.442478322

A=2402.92

gain of 302.92

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