Answer:
The amount is $2572.93 and the interest is $572.93.
Step-by-step explanation:
STEP 1: To find amount we use formula:
A=P(1+rn)n⋅t
A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years
In this example we have
P=$2000 , r=6.5% , n=1 and t=4 years
After plugging the given information we have
AAAA=2000(1+0.0651)1⋅4=2000⋅1.0654=2000⋅1.286466=2572.93
STEP 2: To find interest we use formula A=P+I, since A=2572.93 and P = 2000 we have:
A2572.93II=P+I=2000+I=2572.93−2000=572.93
