Question

Joan invests $800 at 12 1/2% per annum compound interest monthly.What is the amount of interest at the end of the first year?

Answer 1

Answer:

Interest at the end of the first year is $105.93

Step-by-step explanation:

$800 at 12.5% APR compounded monthly.

Interest at the end of the year

= $800 *( (1+0.125/12)^12 - 1 )

= $800 * 0.132416

= $105.93