Question

Daniel puts $80,000 in an account that earns 0.6% interest compounded annually. How much interest does he earn after 15 years?

Answer 1

$7,510.41

Explanation:

Answer 2

Answer: $7,510.41

A = P (1+r/100)^n
A =
`80000 {(1 + (0.6)/(100) )}^(15)`
A= 87,510.41 (Approximate to two decimal places)

I = A-P
I = 87,510.41 - 80,000
I = 7,510.41

Note:
A=Total amount
P=Principal (Initial amount)
r= Rate of interest
n=Time
I= Interest