Question

Need Help Asap!

How much compound interest is earned on $24,500 principal, with an annual interest rate of 5% compounded annually, over years?

compound interest: I = P (1 + r)t

A.
$30,62.50

B.
$2767.82

C.
$27,562.50

D.
$3178.29

Answer 1

Okay so to answer your problem. All you need to do is plug in the values that you know to a calculator.. so that would be 24,500(1+.05)^2.5
this equation equals 27,678.29. But it states in the beginning, only the money he has made on it... so you would subtract the initial $24,500 which would leave you with D 3178.29

Hope this Helps!