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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]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
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