How much more interest is earned on an investment of $12,585 at 3.5% interest over 5 years if the interest is compounded annuall
2 answers:
You might be interested in
Answer:
$960
Step-by-step explanation:
You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned.
<em>I = interest amount </em>
<em>P = principal amount </em>
<em>r = interest rate (decimal form) </em>
<em>t = time </em>
The first step is to change 3% into a decimal:
3% -> -> 0.03
Now, lets plug in the values into the equation:
Jameson will be charged $960 of interest after 4 years.
