Question

Tetsuo's savings account has a balance of $1192. After 22 years, what will the amount of interest be at 1.5% compounded annually?

Answer 1

compounded interest formula

`A=P(1+r)^t`
A=final amount
P=principal
t=time in years
r=rate in decimal


P=1192
t=22
r=1.5%=0.015


`A=1192(1+0.015)^(22)`

`A=1192(1.015)^(22)`
calculator
A=1653.975
round to nearest cent
A=$1653.98

the amount of interest=A-P=1953.98-1192=761.98

interest earned will be $761.98