Answer: the interest is $8137.8
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = $62,604.18
r = 13% = 13/100 = 0.13
n = 1 because it was compounded once in a year.
t = 1 year
Therefore,.
A = 62604.18(1 + 0.13/1)^1 × 1
A = 62604.18(1.13)
A = $70742.7
Her interest would be
70742.7 - 62604.18
= $8137.8
