Juliana just deposited $5,000 into an account at The Compound Bank. The bank will pay 4.5...

Juliana just deposited $5,000 into an account at The Compound Bank. The bank will pay 4.5 percent interest compounded annually on this money. How much interest on interest will Juliana earn over the next 10 years? The interest on interest earned is Blank 1 Use two decimals.

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Expert Solution

Amount on the compound interest at 4.5%=Principal invested*(1+interest)^number of years

=$5000*(1.045)^10

=$5000*1.552969

=$7764.85

Interest earned=amount invested after 10 years-initial principal=$7764.85-5000=$2764.85

jeff jeffy answered 2 years ago

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