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suppose 7,330 dollars is invested at 14.8% per annum for 10 years compounded monthly, how many dollars will be earned in interest during those 10 years, to the nearest cent

Answer :

qop

Answer:

$24,580.12

Step-by-step explanation:

Lets use the compound interest formula to solve:

[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, change 14.8% into a decimal:

14.8% -> [tex]\frac{14.8}{100}[/tex] -> 0.148

Since the interest is compounded monthly, we will use 12 for n. Lets plug in the values now:

[tex]A=7,330(1+\frac{0.148}{12})^{12(10)}[/tex]

[tex]A=31,910.12[/tex]

Now subtract that number from our original amount invested:

[tex]31,910.12-7,330=24,580.12[/tex]

The dollars earned in interest is $24,580.12

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