Emily got a new job that guarantees her a 8% raise every year. If she started out making $25,000, how long will it be before she
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Answer:
Interest in 3 years = $456.52
Step-by-step explanation:
As we know the the formula of compound interest
Total amount =
Here n = number of times amount is compounded
r = rate of interest
t = period
Here A = $2500
r = 0.0575
n = 1 (compounded annually)
t = 3 years
Therefore amount after 3 years
P =2500(1.0575)³
= 2500×1.18
= $2956.52
We have to calculate the interest then
Interest = $2956.52-$2500 = $456.52
So after 3 years interest gained = $456.52