Question

Emelina Deposit $260 into a savings account seven years ago the account earns 8.5% interest compounded annually how much interest has she earned

Answer 1

$200.23

Explanation:

Answer 2

The interest which she has earned is $200.226

Explanation:

Given as :

The principal deposited in account = $260

The time period = 7 years

The interest earn 8.5% compounded annually

Let The amount after 7 years = A

So , From compounded method

Amount = Principal ×
`(1+(Rate)/(100))^(Time)`

Or, Amount = $260 ×
`(1+(8.5)/(100))^(7)`

Or, Amount = $260 ×
`(1.085)^(7)`

Or, Amount = $260 × 1.7701

∴ Amount = $460.226

Now, Compound Interest added = Amount - Principal

or, CI = $460.226 - $260

∴ CI = $200.226

Hence The interest which she has earned is $200.226 Answer