Question

how much interest is earned on a principal of $575 invested at an interest rate of 7% compounded annually for nine years?​

Answer 1

Answer:

362.25 interest is earned.

Step-by-step explanation:

Principal = $575

Rate = 7%

Time = 9 yrs

Formula =

I = p×r×t/100

I = 575 × 7 × 9/100

I = 36225/100

I = 362.25

Answer 2

Answer:

$482.11 in interest

Step-by-step explanation:

Use the compound amount formula.  Calculate the compound amount and then subtract the principle to find the amount of interest earned.

A = P(1 + r)^t, where r is the interest rate as a decimal fraction

This becomes:

A = $575(1 + 0.07)^9, or A = $1057.11.

Subtracting the principal:  A - P:  $1057.11 - $575 = $402.11