If $300 is invested at a 4% APR, how much interest will be earned in 10...

If $300 is invested at a 4% APR, how much interest will be earned in 10 years compounded annually?

(Round to the nearest cent and do not enter the dollar sign)

Solutions

Expert Solution

Formuala for calculation compounding interest is

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

A = Final Amount

P = Initial Principal Amount

r = Interest Rate.

n = Number of times interest applied per time period

t = Number of time period elapsed

Future Value = 300(1+0.04)¹⁰ = $444.0733

Interest Amount = 444-300 = 144

jeff jeffy answered 2 years ago

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