Question

lan is investing $4,800 for 2 years. The interest rate is 5.5%. How much interest will lan earn after 2 years?

Answer 1

$542.52

Explanation:

First, find the total amount.

A = P (1 + r)ᵗ

A = 4800 (1 + 0.055)²

A = 5342.52

Now find the interest.

I = A − P

I = 5342.52 − 4800

I = 542.52