Logan opened a savings account 21 years ago with a deposit of $3,471.52. The account has an interest rate of 3.1% compounded mon

Question

slega [8]

3 years ago

8

Logan opened a savings account 21 years ago with a deposit of $3,471.52. The account has an interest rate of 3.1% compounded mon

thly. How much interest has Logan earned?

Mathematics

1 answer:

notka56 [123] · Answer 1 · 2022-02-26T11:12:11+03:00

notka56 [123]3 years ago

8 0

P = $3,471.52, the principal
r = 3.1% = 0.031, annual ratr
n = 12, monthly compounding
t = 21 years

Note that n*t = 252.

The value after 21 years is
A = 3471.52*(1 + 0.031/12)²⁵²
= $6,650.91

The interest earned is
6650.91 - 3471.52 = 3179.39

Answer: $3,179.39