Question

Using the expression below, choose the correct answers for the new balance and amount of interest earned in the following compound interest problem. P(1 + r)n $1,100 at 8%, for 15 years, compounded annually.

Total Amount = $
Interest Amount = $

Answer 1

Total = Principal * (1 + rate)^years
Total = 1,100 * (1.08)^15
Total = 3,489.39

Answer 2

The total amount is 3,489.39

The Interest amount is 2,389.39